QBI and the Financial Advisor / Salesman

[Yardley CPA]

Have a client, MFJ, who is a statutory employee for a life insurance company.  He receives his W2 from them with Statutory Employee checked.  The wages flow to a schedule C.  In addition, he receives 1099- Misc, Non Employee Comp from several independent companies when he sells policies for them.  That income flows to a second Schedule C.  Based on this scenario, I'm fairly certain the Statutory Schedule C is eligible for QBI.  How about the second C?  Is that eligible?  Here's an article on the topic...it's saying the 2nd C is not eligible.  Would appreciate any input as to whether I am reading anything incorrectly.  Thank you.

https://www.journalofaccountancy.com/issues/2019/jan/qbi-deduction-for-statutory-employees.html

[Lee B]

My take is that the second Schedule C may not be elgible for QBI. On this point it got pretty deep in the weeds.

Glad I don't have a client in the situation. Good Luck !

[Yardley CPA]

1 hour ago, cbslee said:

My take is that the second Schedule C may not be elgible for QBI. On this point it got pretty deep in the weeds.

Glad I don't have a client in the situation. Good Luck !

Thanks CBSLEE.  I agree.  It is deep in the weeds and I'm reading conflicting reports on whether QBI is eligible or not on the second C.

[Gail in Virginia]

The way that I read the article, the first Sch C would be eligible for QBi while the second sch C would be from an SSTB and would not be eligible if the income in total is above the thresholds.  That was not really clearly stated in the article, but was implied when it referred to that income as SSTB income.  This is just an article and not something that can be relied on even thought the source is reputable.  I agree with CBSLEE - good luck!