Will the QBI deduction become permanent?

The qualified business income (QBI) deduction for owners of pass-through entities is set to expire at the end of 2025. However, a couple of bills in Congress has bi-partisan support to make the deduction permanent…and make other changes in the rules. The Main Street Certainty Act (H.R. 1381) and the Small Business Tax Fairness Act (S. 2387) would affect millions of small business owners. S. 2387 would end the distinction for “specified service trades or businesses,” a distinction that currently prevents many successful owners from using this deduction. Still, it would create a new income threshold that would bar any deduction for those with taxable income over $500,000. The fate of these measures, or at least the timing of success, is unclear; they do have bipartisan support. #IdeaoftheDay