This component of the deduction equals 20 percent of qualified REIT dividends and qualified PTP income. It may also be reduced by the patron reduction if the taxpayer is a patron of an agricultural or horticultural cooperative. For 2018, the threshold amount is $315,000 for a married couple filing a joint return, and $157,500 for all other taxpayers. These limitations do not apply to taxpayers with taxable income at or below a certain threshold.
The unadjusted basis immediately after acquisition (UBIA) of qualified property held by the trade or business.The amount of W-2 wages paid by the qualified trade or business, and.Depending on the taxpayer's taxable income, the QBI Component is subject to limitations including: This component of the deduction equals 20 percent of QBI from a domestic business operated as a sole proprietorship or through a partnership, S corporation, trust or estate. Eligible taxpayers can claim it for the first time on their 2018 federal income tax returns filed in 2019. The deduction is available for tax years beginning after Dec. Income earned by a C corporation or by providing services as an employee isn't eligible for the deduction.
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The deduction allows them to deduct up to 20 percent of their qualified business income (QBI), plus 20 percent of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income.
Some trusts and estates may also claim the deduction directly. Many individuals, including owners of businesses operated through sole proprietorships, partnerships, S corporations, trusts and estates may be eligible for a qualified business income deduction, also called the section 199A deduction.
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