# Qualified Business Income Deduction

*Taxes — Finicade finance glossary*

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.

**Also known as:** QBI deduction, Section 199A, pass-through deduction

**Related terms:** [Pass-Through Entity](https://finicade.com/glossary/pass-through-entity), [Self-Employment Tax](https://finicade.com/glossary/self-employment-tax), [Tax Deduction](https://finicade.com/glossary/tax-deduction), [Taxable Income](https://finicade.com/glossary/taxable-income), [Corporate Tax Rate](https://finicade.com/glossary/corporate-tax-rate)

Source: https://finicade.com/glossary/qualified-business-income-deduction