The qualified business income (QBI) deduction was a centerpiece of the 2017 Tax Cuts and Jobs Act (TCJA). The write-off is available to eligible individuals through 2025.
The QBI deduction can be up to 20% of: (1) QBI earned from a sole proprietorship or a single-member LLC (SMLLC) that’s treated as a sole proprietorship for federal income tax purposes plus (2) QBI from a pass-through business entity, meaning a partnership, an LLC that’s treated as a partnership for federal income tax purposes, or an S corporation.
Pass-through…