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Level 1
July 10, 2020

QBI

  • July 10, 2020
  • 1 reply
  • 2 views

Would a hospital be a SSTB?
Hospital is operating as an S corp. None of the owners are medical doctors. 
Two owners are the administrative officers - President & CFO. Other owners are passive investors.
Hospital makes significant investment in medical equipment and has significant payroll to physicians, nurses and staff employees.

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    1 reply

    Level 2
    July 10, 2020

    Yes, a hospital is a SSTB. Below is a short definition of an SSTB from IRS.GOV. 

    An SSTB is a trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, investing and investment management, trading, dealing in certain assets or any trade or business where the principal asset is the reputation or skill of one or more of its employees or owners.