Page 183 - Small Business IRS Training Guides

Qualified Business Income Deduction Basics

Foundation Formula = Lesser of:

20% (QBI from a QTB) +

20% (Qualified REIT Dividends + Qualified PTP Income)
OR

20% (Taxable Income, before QBID, - Net Capital Gain)

Qualified Business Income
QBI –

QBID – Qualified Business Income 2018* Threshold
Deduction $157,500 or $315,000 if MFJ
*Adjusted annually for inflation
QTB – Qualified Trade or Business

Real Estate Investment Trust
REIT – 2018 Phase in Range
($50,000/$100,000 MFJ)

PTP – Publicly Traded Partnership

Greater than $157,500 to $207,500
SSTB – Specified Service Trade or Greater than $315,000 to $415,000 if MFJ

Business

UBIA – Unadjusted Basis Immediately
after Acquisition

DPAD - Domestic Production Activities

Deduction

Resources

• IRC 199A- Qualified Business Income Deduction KB Book – Form 1040 KB,
Expenses and Deductions shelf.
https://portal.ds.irsnet.gov/sites/vl010/lists/199aqualifiedbusinessincomedeductio
n/landingview.aspx

• SB/SE questions should be sent via encrypted email with all relevant
information to sbse.qbid.199A@irs.gov.