Many owners of sole proprietorships, partnerships, S corporations and some trusts and estates may be eligible for a qualified business income (QBI) deduction – also called the Section 199A deduction – for tax years beginning after December 31, 2017. The deduction allows eligible taxpayers to deduct up to 20 percent of their QBI income on their tax returns. C Corporations and Employees are not eligible for this deduction.  Interpreting eligibility rules and qualified deduction amounts for this credit can be difficult for the average business owner.

Therefore, seeking advice from a qualified professional is recommended. The deduction is available regardless of whether taxpayers itemize deductions on Schedule A or take the standard deduction. Eligible taxpayers can claim the deduction for tax years beginning after December 31, 2017, and ending on or before December 31, 2025.

Observation / Insight: This is a valuable credit available to business owners and can reduce your overall personal tax liability. Find out more by contacting  Art Chianese, CPA at TAHR Services Inc or schedule a free discovery call today.

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