The proposed regs used an effectively connected phrasing I think... (I read the proposed regs maybe a dozen times...) And lots of folks, me included, thought that signaled a "Section 162" standard made sense. I.e., if the deduction appeared on Schedule C, the 1065, etc., it reduced QBI.

I realize I've done a blog post on this subject:

https://evergreensmallbusiness.com/section-199a-qualified-business-income-adjustments/