No, real estate is not a SSTB and therefore not subject to the same income limitations.
Is real estate considered a specified service business?
Real Estate Agents are not specified service businesses, but those without employees and taxable income above these levels may find their deduction drastically limited.
What qualifies as a specified service business?
A specified service business is a trade or business to which any of the following applies [IRC Sec. … It involves the performance of services in the fields of health, law, accounting, actuarial sciences, performing arts, consulting, athletics, financial services, or brokerage services.
Is real estate consulting an Sstb?
Fortunately for real estate professionals such as brokers, agents, developers and property managers, they are not included in the SSTB definition.
What is considered a specified service trade or business?
An SSTB is a trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, investing and investment management, trading or dealing in certain assets, or any trade or business where the principal asset is …
Is a real estate agent considered a qualified business income?
After allowable deductions unrelated to her business, Deborah’s total taxable income for 2018 is $370,000. Because her income exceeds the applicable threshold amount, Deborah’s section 199A deduction is subject to the W-2 wage and qualified property limitations.
Is realtor a qualified trade or business?
Are real estate trades or businesses qualified? Real estate agents, brokers or property managers, for example, are several service-based trades or businesses in which the principal asset is reliant on the skill of its employees or owners.
Are mortgage brokers a specified service business?
Additionally, under Section 199A financial and brokerage services are SSTBs.
Is a financial advising firm considered a specified service trade or business?
Application of the QBI Deduction to “High-Income Advisors”
Because after a brief phase-out range of $100,000 for joint filers and $50,000 for all other filers, the QBI deduction is completely eliminated for any income associated with a specified service business.
What is not an Sstb?
Services that improve health or relate to healthcare but are not directly related to providing medical services aren’t SSTBs, for example: … Research, testing, and manufacture of pharmaceuticals or medical devices.
Is landscaping a specified service business?
Under 199A a specified service trade or business is defined as: … The IRS provided an example of a landscaping company that does design services as part of its business.