How To Navigate The Qualified Business Income Deduction For Small Businesses?
How To Navigate The Qualified Business Income Deduction For Small Businesses? The Qualified Business Income (QBI) Deduction is one of the most valuable tax benefits available to small business owners. Introduced under the Tax Cuts and Jobs Act of 2017, it allows eligible businesses to deduct up to 20% of their qualified business income. However, navigating the rules and limitations can be complex. Understanding how to maximize this deduction and hiring experts offering tax planning for small business owners in Fort Worth TX can significantly reduce taxable income and lower overall tax liability. Who Qualifies for the QBI Deduction? The QBI deduction applies to owners of pass-through entities, including: Sole proprietorships Partnerships S corporations LLCs are taxed as pass-through entities It does not apply to C corporations since they are taxed at the corporate level. The deduction is available to eligible business owners who report business income on their tax returns. How the QB...