Introduced by the 2017 Tax Cuts and Jobs Act (TCJA), the qualified business income (QBI) deduction benefited owners of pass-through businesses. These include sole proprietorships, partnerships, limited liability companies (LLCs), and S corporations.The deduction is subject to several limitations, but, overall, it allows taxpayers to deduct up to 20 percent of their qualified business income. But what businesses are qualified to take this deduction?Qualified Business Income Deduction ComponentsThe QBI, also known as the 199A deduction, was set to sunset in December 2025, but the One Big Beautiful Bill Act (OBBB) made the deduction permanent.
Qualified Business Income Deduction Can Save You up to 20 Percent
Date:
