Specified Service Trade or Business (SSTB)

Definition

A Specified Service Trade or Business is a business category defined under Section 199A that includes fields such as law, health, consulting, financial services, and performing arts, among others. Owners of SSTBs face stricter limitations on the QBI deduction, with the benefit phasing out entirely once taxable income exceeds the upper threshold. Identifying whether a client's revenue streams qualify as SSTB income is a critical step in correctly calculating the Section 199A deduction.