2023年12月1日 · Qualified business income (QBI) 20% deduction (Sec. 199A): Owners of passthrough businesses, such as partnerships and S corporations, as well as sole proprietorships, may currently claim a deduction of up to 20% of QBI. Beginning in 2026, the Sec. 199A QBI deduction no longer will be available.

2024年10月8日 · The QBI deduction is scheduled to expire by the end of 2025, potentially increasing the tax burden for many small-business owners and independent contractors. The expiration will affect owners of sole proprietorships, partnerships, LLCs and S corporations.

2024年7月16日 · Enacted via the Tax Cuts and Jobs Act of 2017, the qualified business income deduction, or QBI, is worth up to 20% of eligible revenue, subject to limitations. That tax break …

2024年6月25日 · Qualified Business Income (QBI) deduction sunsets – After the 2025 sunset, this deduction is scheduled to go away completely. The QBI deduction was created to provide parity for small business owners versus the C corporation tax rate having been cut down to 21%.

2024年7月10日 · For owners of pass-through businesses like partnerships, S corporations, and sole proprietorships, the biggest concern around TCJA's sunset is the elimination of the Section 199A deduction on Qualified Business Income (QBI), which allowed for a deduction equal to 20% of the lesser of the taxpayer's QBI or their taxable income.

2025年3月18日 · The scheduled sunset of the QBI deduction after 2025 creates significant uncertainty for business planning. While there’s always a possibility that Congress will extend the provision, prudent planning should account for its potential expiration. Consider accelerating income into years before 2026 when possible, while potentially deferring ...

2023年8月23日 · This resulted in a new and substantial tax benefit for most non-C corporation business owners in the form of a deduction that is generally equal to 20% of their qualified business income (QBI). If allowed to sunset with the TCJA, businesses (generally small businesses) will lose a substantial deduction.

2024年7月15日 · Understanding Business Income and QBI Deduction. The Qualified Business Income (QBI) deduction offers significant tax benefits for small-business owners. This provision allows eligible taxpayers to deduct up to 20% of their business income from certain pass-through entities. Eligibility for Small-Business Owners

2024年4月30日 · However, QBID sunsets in 2025. Will the 2025 Congress consider extending QBID, provided they don’t increase the corporate tax rate? QBID has been a complex tax compliance issue for taxpayers and...

The TCJA created the QBI deduction, which is an automatic 20% deduction off topline revenues for pass-through entities, including S corporations and partnerships. Congress included the QBI deduction to level the playing field between corporations and pass-through entities after having slashed the top corporate tax rate to 21% from 35%.