Tax Strategy Blog for Business Owners

“How does the QBI deduction work with two active businesses — one Schedule C with a net profit and one with a net loss? Is QBI only possible if the combined total is a profit?” The QBI deduction looks simple — 20% off your pass-through profit — until you own two businesses and one of […]

This is Part 4 of a four-part series on Section 199A, the qualified business income deduction, or "QBI." Catch up on Part 1, Part 2, and Part 3 first. Is the business having a good year? Great. Here is what decides whether you keep the 20% deduction on it. Two things determine this: how much […]

This is Part 3 of a four-part series on the qualified business income deduction. Missed the first two? Read Part 1 and Part 2 — they're here. Still on paychecks this week. Last week I told you which side of the line you're probably on. If you're over it, this is the post that matters […]

This is Part 2 of a four-part series on the qualified business income deduction. Read Part 1 here. Last week I told you about a line on your tax return — $403,500 if you are married, half of that if you are single. Cross it, and the 20% deduction most business owners count on stops […]

If you own a business, the QBI deduction is one line on your tax return you should know by name. It's called the qualified business income deduction. Section 199A is the technical name. Your CPA might just call it "QBI." What it does is simple. You take 20 percent of what your business earned and […]