199A and Home Office Deduction

[Yardley CPA]

Schedule C with home office deduction (Simplified Method).  Does the home office deduction have any impact on 199A calculation?.  

The Schedule C is an Information Technology Firm.  They assist clients with technology-related questions and help install computer-related programs.  Is this a Service Business?

 

[EricF]

Home office deduction is a deduction attributable to a qualified business, so it does reduce QBI. 

It can be a specified service business if it falls under the category of "consulting".  The regs define consulting as the provision of professional advice and counsel to clients to assist the client in achieving goals and solving problems.  The performance of service in the field of consulting does not include the performance of services other than advice and counsel, such as sales or the provision of training and educational courses.  Facts and circumstances used in making the determination include, for example, the manner in which the taxpayer is compensated for the services provided.  Performance of services in the field of consulting does not include the performance of consulting services embedded in, or ancillary to, the sale of goods or performance of services on behalf of a trade or business that is otherwise not an SSTB if there is no separate payment for the consulting services.