SSTB, Photography and Director

Technical topics regarding tax preparation.
#1
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46
Joined:
2-Jul-2015 12:25pm
Location:
California
S Corporation was setup for a Schedule C, Creative Production, in 2018. The taxpayer, sole shareholder of the s corporation, does photography and director, but mainly does photographic work in various media (print/video/website/etc), and generates income from performing these services/

Based on the above information is the activity an SSTB?
 

#2
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3222
Joined:
21-Apr-2014 8:25am
Location:
Michigan
I don't think so.... under which category would you consider it to be under consulting or performing arts?
 

#3
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3222
Joined:
21-Apr-2014 8:25am
Location:
Michigan
Actually the performing arts comment was a joke. I don't think this is an SSTB producing print/video/web etc. I think from time to time he may do some consulting, but there is a de minimis rule for 10% or less.
 

#4
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8151
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4-Mar-2018 9:03pm
Location:
The Office
You'll have to further explain the director part. Directors are specifically listed as in the field of performing arts under the 199A-5 reg.

It doesn't seem like consulting based on what OP laid out. I think the exposure is squarely in the field of performing arts.

Reading §1.199A-5(b)(2)(vi) literally, I say that "photographic work in various media (print/video/website/etc)" and selling this work or service is not in the field of performing arts and not an SSTB. The photographer is not "performing" for an audience or providing services that are incidental to a performance.

Agree with Terry that if the directing work is an SSTB you should look to the de minimis rule. Might be some planning opportunities here if the directing is an SSTB and "infects" all taxable income as SSTB income under de minimis, and your client is above the phase-out.
 


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