Page 282 - Large Business IRS Training Guides

What is the Deduction?

Generally, individuals and certain trusts and estates

may be entitled to a qualified business income

deduction (QBID) of up to:

1. 20% of qualified business income (QBI), plus

2. 20% of combined qualified REIT dividends and

qualified PTP income.

The deduction is limited to the lesser of these

amounts or 20% of taxable income less net capital

gain. Other limitations may apply depending on the

taxpayer’s taxable income. 16