Section 199A provides a deduction for qualified business income from a qualified trade or business operated directly through a pass-through entity.
Who May Take Deduction?
Many Individuals, trusts and estates with QBI, REIT dividends or qualified PTP income may qualify.
What is the deduction for QBI?
There are 2 parts to the deduction:
Part 1. Eligible taxpayers may take a deduction of up to 20% of qualified business income (QBI) from a domestic business operated as:
• sole proprietorship
• or through a
○ partnership
○ S corporation
○ trust
○ estate
Part 2. Up to 20% of an eligible taxpayer’s combined qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income.
Get answers about eligibility and limitations including when the Specified Service Trade or Business (SSTB) exception applies and when it doesn’t with Sound CPA Insights for Business.
