The Tax Cuts and Jobs Act (TCJA) has not only created a lot of uncertainty but it has also helped in creating a lot of opportunities in the world of income tax.
The qualified business income deduction is not permitted for certain types of specified businesses and services unless their taxable income falls under certain threshold limits. Consequently, it is imperative to understand Sstb Tax considerations to claim potential benefits.
Further, An Sstb (known as specified service trade or business) eliminates or reduces the 20% QBI Qualified business income deduction if the income level of the taxpayer is high. The official definition of an Sstb has also been expanded in this article.