199A for accountants/ enrolled agents

[ruthc]

I just wanted to confirm that EA's aren't entitled to the 199A deduction. Thanks

[Lion]

Not as employees. But, why can't an EA in business, Schedule C, partnership, or S-corporation, receive QBI and qualify for the deduction, if they meet all the other qualifications. Are you thinking about after their income is so high that the QBID has completely phased out?

[New York Enrolled Agent]

Enrolled agents are contained in the category of accounting - an SSTB by §199A regulation.

If taxable income is under the threshold then there would be the full deduction available. If taxable income exceeds the ceiling (threshold plus the phaseout range) there is no deduction. If taxable income is between threshold and ceiling, the deduction is reduced based on applicable percentage and the wage/UBIA limitations.

[ruthc]

I had thought from the beginning of this subject that EAs were ok with the deduction. I have so much paperwork that I have read about this that now I am getting confused. I can't find the paper that I just misplaced that stated accountants (EAs, etc) were not entitled to the deduction. That got me wondering if I was going crazy (don't comment on that please LOL) .As soon as I read that I wanted to clarify what was correct. Thanks for the info.

[ttbtaxes]

An enrolled agent qualifies as a SSTB (specified service trade or business) pursuant to Reg. 1.199A-5(b)(2)(iv):

"(iv) Meaning of services performed in the field of accounting. For purposes of section 199A(d)(2) and paragraph (b)(1)(iii) of this section only, the performance of services in the field of accounting means the provision of services by individuals such as accountants, enrolled agents, return preparers, financial auditors, and similar professionals performing services in their capacity as such."

That means it is deductible, not deductible, or partially deductible based on how New York Enrolled Agent describes above.