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All glossary terms

Glossary term

Qualified Business Income (QBI) Deduction

A deduction of up to 20 percent of qualified business income from pass-through entities.

Related terms

2

Jurisdictions

us

Definition

Section 199A allows non-corporate taxpayers a deduction of up to 20 percent of qualified business income, with wage and basis limits applying above the taxable-income threshold and limits for specified service trades or businesses. Scheduled to sunset after 2025.

Examples

  • A pass-through business owner with $200,000 of QBI may deduct up to $40,000 (subject to limits).

Translations

ESdeducción QBI
ZH合格商业收入扣除
DEQBI-Abzug
FRdéduction QBI
JA適格事業所得控除

Citations

26 U.S.C. · 199A

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This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.