Qualified Business Income Deduction
Also called: QBI deduction, Section 199A, pass-through deduction
The QBI deduction lets owners of pass-through businesses deduct up to 20% of qualified business income. It was created to keep partnerships and S-corps competitive after the corporate rate was cut, and it is one of the most complicated provisions in the code: service businesses face income limits, and above them the deduction depends on wages paid and property held.