# Qualified business income deduction

> Qualified business income deduction — 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.

Source: https://lopifi.com/glossary/qualified-business-income-deduction
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is 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 known as

- Section 199A deduction
- QBI deduction

## Words this system refuses for it

- a 20% tax rate
- a C corporation deduction

- **Category:** Entity types
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)