Code Sec. 199A Deduction- Demonstrated by Flow Chart

B. Code Sec. 199A Deduction, Who Is Eligible Owners of the following passthrough trades or businesses are eligible for the Code Sec. 199A deduction: * sole proprietorships (Schedule C), * real estate investors (Schedule E), * K entities (Organizations subject to Subchapter K of the Code (e.g., partnerships and limited liability companies), and * S corporations (Organizations subject to Subchapter S of the Code.). [...]QBI is domestic trade or business income, other than investment income (e.g., dividends, interest, capital gain). In particular, QBI: * is the net amount of income, gain, loss, and deduction from:2 - a trade or business located in the United States, or - real property located in the United States, * is not investment income (e.g., dividends, interest, capital gain),3 * is not reasonable compensation to S corporation owner-employees,4 * is not guaranteed payments (for services) to K entity owners.5 For sole proprietors, QBI appears on Form 1040, Schedule C, Line 31 (Net Profit or Loss). [...]Sole Proprietor is engaged in a specified service trade or business.