Is " qualified business income deduction" the same as "Itemized deduction", and do you feel C...

Is " qualified business income deduction" the same as "Itemized deduction", and do you feel C Corporations should quality for this deduction.

Expert Solution

A qualified business income(QBI) deduction allows domestic small business owners and self-employed individuals to deduct up to 20% of their QBI plus 20% of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income on their taxes, or 20% of a taxpayer’s taxable income minus net capital gains.

The qualified business income deduction is for people who have “pass-through income” — that’s business income that you report on your personal tax return.

Entities eligible for the qualified business income deduction include:

Sole proprietorships.
Partnerships.
S corporations.
Limited liability companies (LLCs).

C corporations are not eligible for the deduction, even if they are pass-through entities. You also aren't eligible for income you made by providing services as an employee. Remember that the QBI deduction is for individual taxpayers.

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ekkarill92 answered 1 year ago

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