Only Two Years Left To Take Advantage Of This!

Have you heard of the Qualified Business income deduction or more simply referred to as QBI? The Qualified Business Income Deduction, is a tax deduction available to certain individuals who own and operate a business. This deduction was introduced as part of the Tax Cuts and Jobs Act (TCJA) of 2017, and it aims to provide tax relief to small business owners.

The QBI deduction allows eligible taxpayers to deduct up to 20% of their qualified business income from their taxable income. Qualified business income includes income generated by a sole proprietorship, partnership, S corporation, or certain other businesses. It does not include wages or guaranteed payments made to owners or employees, or investment income such as interest, dividends, or capital gains. There are also certain limitations on the QBI deduction based on the type of business and the amount of W-2 wages paid by the business. The deduction is also subject to certain phase-out rules for high-income taxpayers.

This deduction is set to go away at the end of 2025 so there’s still a couple of years to take advantage of this before it’s gone. Have you had conversations with your CPA or other professionals about maximizing this deduction? If you’re worried you’re missing out, send us a message and see how we can help.