Date of Posting : June 30, 2020

The specified service trade or business is determined at the entity level. So, if an entity is designed as per proposed regulation, all owners are eligible irrespective of their title or contribution to the business. Taking an example, Fred Flintstone and Mr. Slate are owners. Mr. Slate is famous for his skills, and he is known all over the world. He is the primary catalyst for a successful business. Fred also started as an owner of specified service trade and industry, and could get limited on his Section 199A deduction. He would have to face the guilt in any case.