Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

CAn an attorney who receives a K-1 from his firm take the Qualified Business Income deduction?

Highlighted
Level 2

I have a client who is an attorney. He receives a K-1 from his firm. Can he take the qualified business income deduction. K-1 income is north of $530k

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
Highlighted
Level 15

If the QBI is from law practice, it would not meet the exception for SSTB since your client's taxable income is above the threshold.

The reason it's flowing through is probably because you didn't check the box that the ToB is an SSTB.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

0 Cheers
5 Replies 5
Highlighted
Level 15
Level 15
The income is looking kinda hefty there for QBI.....What happens when you enter the K-1 into the clients return?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
0 Cheers
Highlighted
Level 2
I am getting the deduction since other expenses are coming off the K-1.
0 Cheers
Highlighted
Level 8
and you marked it as SSTB income?
If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posed.
0 Cheers
Highlighted
Level 15

If the QBI is from law practice, it would not meet the exception for SSTB since your client's taxable income is above the threshold.

The reason it's flowing through is probably because you didn't check the box that the ToB is an SSTB.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

0 Cheers
Highlighted
Level 15

'.... since other expenses are coming off the K-1."

Could you explain what you mean by this?

Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches
0 Cheers