Qualified business income deduction
In accounting, qualified business income deduction means a deduction for taxpayers other than corporations of up to 20% of qualified business income from pass-through businesses, limited above an income threshold. Made permanent by Pub. L. 119-21, which also added a $400 minimum for $1,000 or more of income from businesses the owner materially participates in.
Also called Section 199A deduction, QBI deduction.
Authority: 26 U.S.C. §199A (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- a 20% tax rate
- a C corporation deduction
Also in Entity types
Defined in Lexicon. This page is generated from that document, so the two can't disagree.