QBI deduction

IRS RULES ON QUALIFIED BUSINESS INCOME

Last week, the IRS issued 274 pages of final regulations governing the new Section 199A Qualified Business Income (QBI) deduction. (You’re probably already starting to feel a headache coming on. Don’t worry, we read this stuff so you don’t have to.) The new regulations interpret one of the most important parts of the 2017 tax reform act, a new deduction up to 20% for pass-through income from proprietorships, partnerships, and S corporations.