Cryptocurrency Q&A
What does the IRS consider professional services?
What does the IRS consider professional services?
ShintoMystery
Wed Sep 11 2024
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7 answers
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Could you elaborate on what the Internal Revenue Service (IRS) deems as "professional services" for the purpose of taxation? Specifically, how do they categorize activities such as cryptocurrency trading, consulting, or software development related to digital assets? Are there any specific requirements or criteria that need to be met for a service to be considered professional in nature, and how does this impact tax reporting obligations? Additionally, are there any common misconceptions or grey areas that taxpayers should be aware of when determining whether their activities qualify as professional services under IRS guidelines?
7 answers
SumoHonorable
Fri Sep 13 2024
The term "Specified Service Trade or Business" (SSTB) encompasses a broad range of activities that involve the provision of services. These services span across various industries and professions, each with its unique characteristics and requirements.
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OliviaTaylor
Fri Sep 13 2024
One of the key sectors included in the SSTB category is health. This encompasses a wide array of services related to the maintenance and improvement of individuals' physical and mental well-being.
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amelia_jackson_environmentalist
Fri Sep 13 2024
The legal profession is also considered an SSTB, as it involves the provision of legal advice, representation, and advocacy services to clients.
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Stefano
Thu Sep 12 2024
Accounting and actuarial science are other fields that fall under the SSTB umbrella. These professions require specialized knowledge and skills in financial analysis, reporting, and risk management.
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Giulia
Thu Sep 12 2024
The performing arts, such as music, dance, and theater, are also included in the SSTB definition. These activities involve the creation and presentation of artistic works for the enjoyment and appreciation of audiences.
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