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The Qualified Business Income Deduction: Learn More How It Can Help your Small Business Client

April 25, 2023 (3 min read)

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. The deduction allows eligible taxpayers to deduct up to 20% of their QBI, plus 20% of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. Income earned through a C corporation or by providing services as an employee is not eligible for the deduction. Learn more about the filing requirements to claim the QBI deduction by reading this practice note.

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    Learn more about qualified trades or businesses eligible for the Section 199A deduction.  In general, qualified business income is the net amount of domestic qualified items of income, gain, deduction, and loss with respect to the taxpayer's qualified businesses. 

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