Am I Eligible For A Qualified Business Income Deduction?

The Qualified Business Income (QBI) deduction and related rules and guidance can difficult to navigate. There are several factors and issues that eligible business owners must consider.

To help make the analysis 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 whether they are eligible for a QBI deduction. This flowchart addresses common considerations, including:

  • 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
  • De minimis rules

 

Updated for 7/15/2020