Qualified Business Income Archives - Roger Rossmeisl, CPA

13 Aug 2025

The QBI Deduction and What's New in OBBBA 2025

The qualified business income (QBI) deduction, which became effective in 2018, is a significant tax benefit for many business owners. It allows eligible taxpayers to deduct up to 20% of QBI, not to exceed 20% of taxable income. It can also be claimed for up to 20% of income from qualified real estate investment trust dividends. With recent changes under the One, Big, Beautiful Bill Act (OBBBA), this powerful deduction is becoming more accessible and beneficial. Most important, the OBBBA makes the QBI deduction permanent. It had been scheduled to end on December 31, 2025. A closer look QBI is generally defined as the net amount of qualified income, gain, deduction and loss from a qualified U.S. trade or business. Taxpayers eligible for the deduction include sole proprietors and...

17 Apr 2024

Maximize the QBI Deduction Before It’s Gone

Roger Rossmeisl, CPA

Small Business Tax Briefs

Maximize the QBI Deduction Before It's Gone

The qualified business income (QBI) deduction is available to eligible businesses through 2025. After that, it’s scheduled to disappear. So if you’re eligible, you want to make the most of the deduction while it’s still on the books because it can potentially be a big tax saver. Deduction basics The QBI deduction is written off at the owner level. It can be up to 20% of: QBI earned from a sole proprietorship or single-member LLC that’s treated as a sole proprietorship for tax purposes, plus QBI from a pass-through entity, meaning a partnership, LLC that’s treated as a partnership for tax purposes or S corporation. How is QBI defined? It’s qualified income and gains from an eligible business, reduced by related deductions. QBI is reduced by: 1) deductible...

01 Jan 2023

Do you Qualify for the QBI Deduction and What Can you Do to Help Qualify?

Roger Rossmeisl, CPA

Small Business Tax Briefs

Do you Qualify for the QBI Deduction and What Can you Do to Help Qualify?

If you own a business, you may wonder if you’re eligible to take the qualified business income (QBI) deduction. Sometimes this is referred to as the pass-through deduction or the Section 199A deduction. The QBI deduction is: Available to owners of sole proprietorships, single member limited liability companies (LLCs), partnerships, and S corporations, as well as trusts and estates. Intended to reduce the tax rate on QBI to a rate that’s closer to the corporate tax rate. Taken “below the line.” In other words, it reduces your taxable income but not your adjusted gross income. Available regardless of whether you itemize deductions or take the standard deduction. Taxpayers other than corporations may be entitled to a deduction of up to 20% of their QBI. For 2022, if...

03 Aug 2021

10 Facts About the Pass-Through Deduction for Qualified Business Income

Roger Rossmeisl, CPA

Small Business Tax Briefs

10 Facts About the Pass-Through Deduction for Qualified Business Income

Are you eligible to take the deduction for qualified business income (QBI)? Here are 10 facts about this valuable tax break, referred to as the pass-through deduction, QBI deduction or §199A deduction. It’s available to owners of sole proprietorships, single member limited liability companies (LLCs), partnerships and S corporations. It may also be claimed by trusts and estates. The deduction is intended to reduce the tax rate on QBI to a rate that’s closer to the corporate tax rate. It’s taken “below the line.” That means it reduces your taxable income but not your adjusted gross income. But it’s available regardless of whether you itemize deductions or take the standard deduction. The deduction has two components: 20% of QBI from a domestic business operated as...

09 Dec 2020

QBI Deduction Basics and Year-End Tax Tip

Roger Rossmeisl, CPA

Small Business Tax Briefs

QBI Deduction Basics and Year-End Tax Tip

If you own a business, you may wonder if you’re eligible to take the qualified business income (QBI) deduction. Sometimes this is referred to as the pass-through deduction or the §199A deduction. The QBI deduction: Is available to owners of sole proprietorships, single member limited liability companies (LLCs), partnerships, and S corporations, as well as trusts and estates. Is intended to reduce the tax rate on QBI to a rate that’s closer to the corporate tax rate. Is taken “below the line.” In other words, it reduces your taxable income but not your adjusted gross income. Is available regardless of whether you itemize deductions or take the standard deduction. Taxpayers other than corporations may be entitled to a deduction of up to 20% of their QBI. For...

The QBI Deduction and What’s New in OBBBA 2025

Maximize the QBI Deduction Before It’s Gone

Do you Qualify for the QBI Deduction and What Can you Do to Help Qualify?

10 Facts About the Pass-Through Deduction for Qualified Business Income

QBI Deduction Basics and Year-End Tax Tip

ROGER ROSSMEISL, CPA

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