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What CPAs need to know about Sec. 199A guidance and SSTBs

Hosted by Chris Baysden

Please note: This item is from our archives and was published in 2019. It is provided for historical reference. The content may be out of date and links may no longer function.

One of the areas that accountants are most interested in regarding tax reform is Sec. 199A guidance — and, more specifically, how the deduction for qualified business income relates to a specified service trade or business. In this episode of the podcast, Tony Nitti, CPA, addresses some popular questions on that topic. Nitti is a tax partner at Withum’s Aspen, Colorado, office.

What you’ll learn in this episode:

  • What types of businesses are included in the term “specified service trade or business” (SSTB) and what is the point of denying a deduction for them?
  • A lot of people were worried about the “catch-all” covering all trades or businesses where the principal asset of the business is the skill or reputation of one or more of its owners or employees. Is that as expansive as it sounds?
  • What happens if a business has some non-SSTB revenue, but also a small amount of SSTB revenue?
  • Could some SSTBs — like doctors, lawyers, or accountants – strip out earnings from their business and move them to a non-SSTB?
  • Is there anything we should expect to see changed or clarified in the final regulations concerning SSTBs?

Play the episode below:


To comment on this podcast or to suggest an idea for another podcast, contact Chris Baysden, associate director, content development, at chris.baysden@aicpa-cima.com.