In 2020, owners of pass-through entities will be able to have more taxable income before being subject to a limitation on their qualified business income (QBI) deduction. Due to cost-of-living adjustments, those with taxable income no more than $326,600 for married filing joint returns, $163,300 for married filing separate returns, and $163,300 for all other returns can basically take a 20% deduction of their QBI. Find out more about QBI rules from the IRS.
Barbara Weltman
Big Ideas for Small Business, Inc.
Subscribe and download our eBook, "150+ Tax Deductions for Small Business A to Z."
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