Am I Eligible For A Qualified Business Income Deduction?

The provisional rules surrounding the Qualified Business Income (QBI) deduction can be complicated. There are several issues that must be considered.

To help make the conversation easier, we have created the “Am I Eligible For A Qualified Business Income (QBI) Deduction?” flowchart. It addresses some of the most common issues that arise for a client trying to understand if they are eligible for a QBI deduction. This flowchart considers the provisional rules:

  • Eligible business structures
  • Types of income eligible for the QBI deduction
  • Annual limits & phase-outs
  • Specified Services Trade Business categories
  • Impact of owning multiple businesses
  • Incidental to SSTB rules
  • De minimis rules


Updated for 2020