Business net income may generate a QBI deduction under Section 199A, but is business status always necessary or desired? Some activities are deemed to be business, even though they are not. If they are not, they aren't subject to business interest expense limitations. Some investment activities generate deductions "above the line," while others don't. Worst of all is the hobby, whose expenses are not deductible anywhere. There is no bright line. This session discusses the differences and why they matter.
Recognize factors utilized in distinguishing business, investment and hobby activities
Recall the benefits of business status
Identify investment activities that may generate QBI deductions