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QBI for Wealth Management/Financial Advisors S-Corp

Level 1

We are working with an S-Corp client that is a Wealth Management/Financial Advisors business.  I know this is considered an SSTB for QBI purposes but I've heard certain revenue sources may still qualify for the QBI deduction but I've been having trouble finding anything to back this up.  

The company's revenue streams include annuity sales, insurance commissions and revenue from assets under management.  

Would any of these qualify for the QBI deduction and be excluded from being considered SSTB income?

Thanks in advance for your help.

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2 Replies 2
Level 15

"having trouble finding anything"

Did you google:

are annuity sales sstb

There are a lot of interesting analyses. It's going to take some research and your own interpretation.


"Level Up" is a gaming function, not a real life function.
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Level 12
Level 12

Generally if the SCorp has income from an SSTB that exceeds 10%, then the entire business is considered an SSTB. here is a example from code 26 CFR 1.199A-5 (C) (1): and this is a link:


  (A) Example 1. Landscape LLC sells lawn care and landscaping equipment and also provides advice and counsel on landscape design for large office parks and residential buildings. The landscape design services include advice on the selection and placement of trees, shrubs, and flowers and are considered to be the performance of services in the field of consulting under paragraphs (b)(1)(vi) and (b)(2)(vii) of this section. Landscape LLC separately invoices for its landscape design services and does not sell the trees, shrubs, or flowers it recommends for use in the landscape design. Landscape LLC maintains one set of books and records and treats the equipment sales and design services as a single trade or business for purposes of sections 162 and 199A. Landscape LLC has gross receipts of $2 million. $250,000 of the gross receipts is attributable to the landscape design services, an SSTB. Because the gross receipts from the consulting services exceed 10 percent of Landscape LLC's total gross receipts, the entirety of Landscape LLC's trade or business is considered an SSTB.