Mar. 17 at 6:01 PM
$IEP The Qualified Business Income (QBI) deduction, or Section 199A deduction, allows eligible pass-through entities—sole proprietors, partnerships, and S corps—to deduct up to 20% of their qualified business income from their taxes. The deduction is aimed at reducing taxes for small businesses, generally effective through 2025.
IRS (.gov)
IRS (.gov)
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Key Aspects of the QBI Deduction:
Eligibility: Generally available to owners of pass-through businesses (sole proprietorships, partnerships, S-corporations) operating in the US.
Deduction Limit: It is generally the lesser of 20% of QBI plus 20% of qualified REIT dividends/PTP income, or 20% of taxable income minus net capital gains.
Income Thresholds (2025): If total taxable income is at or below
$197,300 (single) or
$394,600 (joint), you likely qualify for the full 20% deduction.
Limitations: Above these income thresholds, the deduction is subject to limitations based on W-2 wages paid and the unadjusted basis of qualified property
