{"id":1563,"date":"2018-10-13T15:18:27","date_gmt":"2018-10-13T15:18:27","guid":{"rendered":"https:\/\/wcginc.com\/?p=1563"},"modified":"2026-01-26T16:37:15","modified_gmt":"2026-01-26T16:37:15","slug":"section-199a-frequently-asked-questions","status":"publish","type":"post","link":"https:\/\/wcginc.com\/blog\/section-199a-frequently-asked-questions\/","title":{"rendered":"Section 199A Frequently Asked Questions"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-68b5a1454a556\" class=\" wd-rs-68b5a1454a556 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><\/p>\n<div class=\"overview\">\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><b>The Section 199A deduction<\/b> from the 2017 Tax Cuts and Jobs Act provides a tax break for business owners, including S Corps, partnerships, sole proprietors, and rental property owners.<\/li>\n<li><b>The deduction is taken on the<\/b> <b>owner\u2019s individual tax return<\/b>, not the business return.<\/li>\n<li><b>LLC formation is not required<\/b> to qualify for Section 199A.<\/li>\n<li><b>Rental property owners<\/b> can claim the deduction if they meet the IRS Notice 2019-7 safe harbor rules.<\/li>\n<li><b>Certain professions are labeled<\/b> <b>Specified Service Trades or Businesses (SSTBs)<\/b>, which may limit or phase out the deduction at higher income levels.<\/li>\n<li><b>SSTB designation is determined at the<\/b> <b>entity level<\/b>, affecting all owners regardless of individual contributions.<\/li>\n<li><b>Income thresholds matter<\/b>: $157,500 for singles and $315,000 for married filing jointly; above these, SSTB deductions phase out.<\/li>\n<li><b>Married filing separately<\/b> <b>does not bypass SSTB limits<\/b>, and community property rules may apply.<\/li>\n<li>WCG provides guides, PDFs, and resources to help small business owners <b>understand and optimize Section 199A<\/b> deductions.<\/li>\n<\/ul>\n<\/div>\n<p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-67333c13607cd\" class=\" wd-rs-67333c13607cd wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title img-right \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p><img decoding=\"async\" class=\"alignnone size-medium wp-image-23697\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/rave-300x183.jpg\" alt=\"\" width=\"300\" height=\"183\" srcset=\"https:\/\/wcginc.com\/wp-content\/uploads\/rave-300x183.jpg 300w, https:\/\/wcginc.com\/wp-content\/uploads\/rave.jpg 328w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>The Tax Cuts and Jobs Act of 2017 created a new tax deduction for business owners (and others) called the Section 199A Qualified Business Income Deduction. Later in August 2018, the IRS released\u00a0<a href=\"https:\/\/wcginc.com\/wp-content\/uploads\/2024\/10\/Section199A-ProposedRegs-5.pdf\" target=\"_blank\" rel=\"noopener\">Proposed Regulations 1.199A<\/a>\u00a0to offer some additional insight to Section 199A. However, some of it reads well and some of it doesn\u2019t, and we continue to field questions from clients and other small business owners all the time. As such we created a blog post titled Section 199A Frequently Asked Questions.<\/p>\n<p>Before we get into Section 199A questions and answers, here are some additional resources for your review-<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[vc_row_inner el_class=&#8221;boxes&#8211;pack&#8221; woodmart_css_id=&#8221;672f64599e51f&#8221; responsive_spacing=&#8221;eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzJmNjQ1OTllNTFmIiwic2hvcnRjb2RlIjoidmNfcm93X2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=&#8221; mobile_bg_img_hidden=&#8221;no&#8221; tablet_bg_img_hidden=&#8221;no&#8221; woodmart_parallax=&#8221;0&#8243; woodmart_gradient_switch=&#8221;no&#8221; woodmart_box_shadow=&#8221;no&#8221; wd_z_index=&#8221;no&#8221; woodmart_disable_overflow=&#8221;0&#8243; row_reverse_mobile=&#8221;0&#8243; row_reverse_tablet=&#8221;0&#8243;][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a25d21f6e8\" class=\" wd-rs-689a25d21f6e8 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/Deduction-General-1.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Section 199A Deduction General<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Find helpful insights, summaries, and resources to understand this important tax benefit.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"\/blog\/cost-segregation\/\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a25dd8d38a\" class=\" wd-rs-689a25dd8d38a wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/S-Corp-Section-199A-1.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Section 199A and S Corps<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Learn about the Section 199A Qualified Business Income Deduction, a key tax benefit.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"\/tax-center\/investor-patrol-services\/\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a25e484d29\" class=\" wd-rs-689a25e484d29 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"300\" height=\"189\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/294631_2437589431_section_199a_rental_property_300-3.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Section 199A and Rentals<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Learn about Section 199A&#8217;s 20% deduction for small business owners and rental income.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"\/kb\/rental-partnerships\/\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][\/vc_row_inner]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-67333c2cf21fd\" class=\" wd-rs-67333c2cf21fd wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_I_have_to_create_an_LLC_to_get_the_Section_199A_deduction\"><\/span>Do I have to create an LLC to get the Section 199A deduction?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No. It is available to sole proprietors (no entity formation), rental property owners (as far as we know and the proposed regulations do not state otherwise), S corporation shareholders and partnerships (multi-member LLCs, LLPs, and all the other goofy variants). Having an LLC is a good idea for other reasons, but the Section 199A deduction is not one of them.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_the_Section_199A_deduction_a_business_deduction\"><\/span>Is the Section 199A deduction a business deduction?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No. It is a deduction taken on the owner\u2019s individual tax return on page 2 of Form 1040 on line 9. Don\u2019t look at your 2017 tax returns for line 9\u2026 the IRS decided to chop up Form 1040 into multiple parts and relabeled them Schedules for the sake of everyone\u2019s desire to have a postcard tax return. No one seems to complain about state tax returns which can easily exceed 3 pages (California).<\/p>\n<p>Back to the IRS and Form 1040 being chopped up\u2026 For example, Schedule 1 is titled Additional Income and Adjustments to Income which is essentially page 1 of old school Form 1040. Here is a\u00a0<a href=\"https:\/\/www.irs.gov\/pub\/irs-dft\/f1040--dft.pdf\" target=\"_blank\" rel=\"noopener\">draft Form 1040<\/a>\u00a0with the numbered schedules. As of October 13, 2018, the\u00a0<a href=\"https:\/\/apps.irs.gov\/app\/picklist\/list\/draftTaxForms.html\" target=\"_blank\" rel=\"noopener\">IRS was still tinkering<\/a>\u00a0with these. These numbered schedules plus the traditional lettered ones (A, B, C, D, E, F, etc.) is absolutely silly\u2026 have a 3 page Form 1040 with lettered schedules as necessary. Much simpler, yet we digress.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_the_Section_199A_deduction_available_to_rental_property_owners\"><\/span>Is the Section 199A deduction available to rental property owners?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, but there are rules outlined in\u00a0<a href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/n-19-07.pdf\" target=\"_blank\" rel=\"noopener\">IRS Notice 2019-7<\/a>\u00a0including\u00a0<a href=\"https:\/\/wcginc.com\/blog\/section-199a-rental-income-safe-harbor\/\">Section 199A safe harbor<\/a>\u00a0requirements. You should also read our blog post specifically on the\u00a0<a href=\"https:\/\/wcginc.com\/blog\/section-199a-rental-income-safe-harbor\/\">Section 199A rental property<\/a>\u00a0rules and analysis.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[vc_row_inner el_class=&#8221;boxes&#8211;pack&#8221; woodmart_css_id=&#8221;672f64599e51f&#8221; responsive_spacing=&#8221;eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzJmNjQ1OTllNTFmIiwic2hvcnRjb2RlIjoidmNfcm93X2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=&#8221; mobile_bg_img_hidden=&#8221;no&#8221; tablet_bg_img_hidden=&#8221;no&#8221; woodmart_parallax=&#8221;0&#8243; woodmart_gradient_switch=&#8221;no&#8221; woodmart_box_shadow=&#8221;no&#8221; wd_z_index=&#8221;no&#8221; woodmart_disable_overflow=&#8221;0&#8243; row_reverse_mobile=&#8221;0&#8243; row_reverse_tablet=&#8221;0&#8243;][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a25f8e9a6a\" class=\" wd-rs-689a25f8e9a6a wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/final-reg.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Section 199A Final Regs Quickie<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Read more about Section 199A regulations and rental property provisions in IRS Notice 2019-7.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"\/blog\/cost-segregation\/\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a25ff87433\" class=\" wd-rs-689a25ff87433 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/deep-dive-1.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Section 199A Final Regs Deep Dive<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Read our condensed 70-page Section 199A guide for small business owners in just one hour.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"\/tax-center\/investor-patrol-services\/\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a260564a55\" class=\" wd-rs-689a260564a55 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/book-pdf-3.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Section 199A Final Regs PDF<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Learn about the IRS definition of trade or business and Section 199A with our accessible PDF.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"\/wp-content\/documents\/Section199A-ProposedRegs.pdf\" title=\"\" rel=\"nofollow\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][\/vc_row_inner]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-67333f3ce4463\" class=\" wd-rs-67333f3ce4463 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_did_they_make_the_Section_199A_deduction_on_the_individual_tax_return_of_the_owner\"><\/span>Why did they make the Section 199A deduction on the individual tax return of the owner?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-26140\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/1040-booklets-200x300-1.jpg\" alt=\"\" width=\"200\" height=\"300\" \/>Simple. The way Section 199A is written, there are limitations based on household income so it would be difficult for the business entity tax return to have visibility into each owners\u2019 individual tax situation (not to mention privacy concerns).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_specified_service_trade_or_business_nonsense_I_hear_about\"><\/span>What is the specified service trade or business nonsense I hear about?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Section 199A defines certain professions where the deduction is limited when certain income thresholds are exceeded. The list is health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, investing services and securities trading services. Plus any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"I_am_a_CRNA_operating_an_S_Corp_Am_I_considered_a_specified_service_trade_or_business\"><\/span>I am a CRNA operating an S Corp. Am I considered a specified service trade or business?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes. The Proposed Regulations 1.199A expanded definitions of SSTBs. Specifically for health, the regs state that anyone who provides medical services is considered a specified service trade or business. This means that nurses, nurse anesthetists, chiropractors, physical therapists, massage therapists, etc.<\/p>\n<p>Law includes attorneys, paralegals, mediators and arbiters. Accounting includes CPAs,\u00a0<a href=\"https:\/\/wcginc.com\/difference-between-cpa-and-enrolled-agent\/\">Enrolled Agents<\/a>, bookkeepers, tax professionals, financial auditors, etc. Credentials do not make or break this definition.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Where_is_the_specified_service_trade_or_business_determined\"><\/span>Where is the specified service trade or business determined?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>SSTB is determined at the entity level. So, if an entity is designated a specified service trade or business, all owners are subject to this possible limitation regardless of their individual title or contribution to the business. For example, let\u2019s say Fred Flintstone and Mr. Slate are owners together. And Mr. Slate\u2019s reputation or skill is known all over the world and it is the primary catalyst for the success of the business. Fred will also be deemed an owner of a specified service trade and business, and could further be limited on his Section 199A deduction. Guilty by association.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"If_the_business_is_deemed_to_be_a_SSTB_do_I_lose_my_Section_199A_deduction\"><\/span>If the business is deemed to be a SSTB, do I lose my Section 199A deduction?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Maybe. Perhaps. You might. Yes and No. This is one of the biggest confusions out there. If you are a married doctor making $300,000 as a household you do not lose your Section 199A deduction, but if you make $500,000 you do. Read that again. Being labeled as a specified service trade or business isn\u2019t bad until you meet income thresholds, which are $157,500 for singles and $315,000 for married filing joint. These numbers represent the end of the\u00a0<a href=\"https:\/\/taxfoundation.org\/2019-tax-brackets\/\" target=\"_blank\" rel=\"noopener\">24% marginal tax bracket<\/a>, and the next tax bracket is 32%. This means the 32%, 35% and 37% represent the wealthier taxpayers and as such the Section 199A deduction becomes limited.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_if_I_file_married_filing_separately_Can_I_get_around_the_SSTB_limitations\"><\/span>What if I file married filing separately? Can I get around the SSTB limitations?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Nice try. The IRS is smart. Congress is smart. The Joint Committee on Taxation is smart. Stop laughing\u2026 really, they are! And they saw you coming a mile a way\u2026 probably heard you too. All kidding aside, the tax code is very, very careful to prevent simple tax arbitrage based on tax filing status. If you are married filing separately, your $315,000 becomes $157,500 anyway. And\u2026 if you are in a community property state it might not make a difference since the K-1 will be the tax document coded with the specified service trade or business designation and splitting your income 50-50 (like in California) doesn\u2019t appear to help.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[vc_row_inner el_class=&#8221;boxes&#8211;pack&#8221; woodmart_css_id=&#8221;672f64599e51f&#8221; responsive_spacing=&#8221;eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzJmNjQ1OTllNTFmIiwic2hvcnRjb2RlIjoidmNfcm93X2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=&#8221; mobile_bg_img_hidden=&#8221;no&#8221; tablet_bg_img_hidden=&#8221;no&#8221; woodmart_parallax=&#8221;0&#8243; woodmart_gradient_switch=&#8221;no&#8221; woodmart_box_shadow=&#8221;no&#8221; wd_z_index=&#8221;no&#8221; woodmart_disable_overflow=&#8221;0&#8243; row_reverse_mobile=&#8221;0&#8243; row_reverse_tablet=&#8221;0&#8243;][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a260d382fb\" class=\" wd-rs-689a260d382fb wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/Text-WCG-Offices-3.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Text WCG Offices<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Need to get in touch through a quick text?\u00a0 We\u2019ll respond back as soon as we can.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"sms:+17193452100?&amp;body=Hey%20WCG!%20Please%20call%20me%20to%20discuss%20your%20CPA%20services\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a261976902\" class=\" wd-rs-689a261976902 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/Chat-Our-Amazing-Team-3.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Call Our Amazing Team<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>If you need to speak to someone, we\u2019re good listeners!\u00a0 Give us a call and we\u2019ll help you out!<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"tel:1-719-387-9800\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a26204d62c\" class=\" wd-rs-689a26204d62c wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/Chat-With-a-Tax-Pro-3.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Chat With A Tax Pro<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Taxes are complicated.\u00a0 We make them simple.\u00a0 Get in touch with a pro here at WCG!<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"https:\/\/wcginc.com\/contact-us\/\" title=\"contact-us\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][\/vc_row_inner]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-67333c4d0f012\" class=\" wd-rs-67333c4d0f012 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Here is our summary of the major issues recently updated by the final regulations, rental property safe harbor (<a href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/n-19-07.pdf\" target=\"_blank\" rel=\"noopener\">Notice 2019-7<\/a>) and how all this crud affects S corporations-<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[vc_row_inner el_class=&#8221;boxes&#8211;pack&#8221; woodmart_css_id=&#8221;672f64599e51f&#8221; responsive_spacing=&#8221;eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzJmNjQ1OTllNTFmIiwic2hvcnRjb2RlIjoidmNfcm93X2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=&#8221; mobile_bg_img_hidden=&#8221;no&#8221; tablet_bg_img_hidden=&#8221;no&#8221; woodmart_parallax=&#8221;0&#8243; woodmart_gradient_switch=&#8221;no&#8221; woodmart_box_shadow=&#8221;no&#8221; wd_z_index=&#8221;no&#8221; woodmart_disable_overflow=&#8221;0&#8243; row_reverse_mobile=&#8221;0&#8243; row_reverse_tablet=&#8221;0&#8243;][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a263239c88\" class=\" wd-rs-689a263239c88 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/final-reg.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Section 199A Final Regs Quickie<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Read more about Section 199A regulations and rental property provisions in IRS Notice 2019-7.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"\/blog\/section-199-final-regulations\/\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a263a47ac6\" class=\" wd-rs-689a263a47ac6 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/deep-dive-1.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Section 199A Final Regs Deep Dive<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Read our condensed 70-page Section 199A guide for small business owners in just one hour.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"\/blog\/section-199a-final-regulations\/\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a26414b1b8\" class=\" wd-rs-689a26414b1b8 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"300\" height=\"189\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/294631_2437589431_section_199a_rental_property_300-3.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Section 199A and Rentals<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Learn about Section 199A&#8217;s 20% deduction for small business owners and rental income.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"\/blog\/section-199a-rental-income-safe-harbor\/\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][\/vc_row_inner][vc_row_inner el_class=&#8221;boxes&#8211;pack&#8221; woodmart_css_id=&#8221;672f64599e51f&#8221; responsive_spacing=&#8221;eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzJmNjQ1OTllNTFmIiwic2hvcnRjb2RlIjoidmNfcm93X2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=&#8221; mobile_bg_img_hidden=&#8221;no&#8221; tablet_bg_img_hidden=&#8221;no&#8221; woodmart_parallax=&#8221;0&#8243; woodmart_gradient_switch=&#8221;no&#8221; woodmart_box_shadow=&#8221;no&#8221; wd_z_index=&#8221;no&#8221; woodmart_disable_overflow=&#8221;0&#8243; row_reverse_mobile=&#8221;0&#8243; row_reverse_tablet=&#8221;0&#8243;][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a26494c489\" class=\" wd-rs-689a26494c489 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/Deduction-General-1.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Section 199A Deduction General<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt it amet.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"\/business-services\/section-199a-deduction\/\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a26505f963\" class=\" wd-rs-689a26505f963 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/S-Corp-Section-199A-1.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Section 199A and S Corps<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt it amet.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"\/blog\/section-199a-s-corp-benefits\/\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=&#8221;1\/3&#8243;]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-689a265660006\" class=\" wd-rs-689a265660006 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/book-pdf-3.jpg\" class=\"attachment-full size-full\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title box-title-style-default wd-fontsize-m\">Section 199A Final Regs PDF<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt it amet.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"https:\/\/wcginc.com\/wp-content\/uploads\/2024\/11\/Section199A-ProposedRegs.pdf\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][\/vc_row_inner]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-68b5a1a356b75\" class=\" wd-rs-68b5a1a356b75 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title faqs-wrap \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title box-title-style-default wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Who_qualifies_for_the_Section_199A_deduction\"><\/span>Who qualifies for the Section 199A deduction?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>S Corporations, partnerships, LLCs, sole proprietors, and qualifying rental property owners.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_I_need_an_LLC_to_get_the_deduction\"><\/span>Do I need an LLC to get the deduction?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No, it is available to multiple business structures, not just LLCs.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Where_is_the_deduction_claimed\"><\/span>Where is the deduction claimed?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>On the owner\u2019s individual tax return (Form 1040).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_a_Specified_Service_Trade_or_Business_SSTB\"><\/span>What is a Specified Service Trade or Business (SSTB)?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Certain professions like health, law, accounting, consulting, athletics, and others where deduction limits apply above income thresholds.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_are_SSTB_limits_applied\"><\/span>How are SSTB limits applied?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Based on household income: $157,500 for singles, $315,000 for married filing jointly.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Does_being_an_SSTB_mean_I_lose_my_deduction\"><\/span>Does being an SSTB mean I lose my deduction?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Not automatically; limits apply only if income exceeds threshold amounts.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_married_couples_file_separately_to_avoid_limits\"><\/span>Can married couples file separately to avoid limits?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No, the IRS and tax rules prevent this workaround.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_rental_property_owners_claim_Section_199A\"><\/span>Can rental property owners claim Section 199A?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, if they meet IRS safe harbor requirements for trade or business status.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Where_can_I_learn_more_about_Section_199A_rules\"><\/span>Where can I learn more about Section 199A rules?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>WCG provides guides, PDFs, and blog posts summarizing regulations and safe harbor rules.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Does_SSTB_status_affect_all_owners_of_a_business\"><\/span>Does SSTB status affect all owners of a business?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, designation is at the entity level, so all owners may be impacted.<\/p>\n<p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_row_inner el_class=&#8221;boxes&#8211;pack&#8221; woodmart_css_id=&#8221;672f64599e51f&#8221; 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