Qualified business income deduction (Section 199A)

The qualified business income deduction lets owners of pass-through businesses deduct up to 20 percent of qualified business income, subject to income thresholds and limits based on wages paid and property for higher earners.

Specified service businesses, including law and accounting, phase out of the deduction above the thresholds. Crypto trading generally is not a qualified business.

Why it matters: entity structure and salary decisions change the size of the deduction.

Where this comes up in our work

Business law and Gordon Tax

Asset protection and M&A at Gordon Law; entity structuring, payroll, and business returns at Gordon Tax.

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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.