There is a 20% deduction on all qualified business income. The taxpayer’s qualified business income is the net amount of income and deductions for their trade or business.Qualified business income includes income from:ServicesRental real estateSole proprietorships and pass-through income from partnerships, S-corporations, estates and trusts qualify for this deduction. C corporations don’t qualify.

Question

What is the 20% deduction for self-employed filers?

Forum|Forum|8 years ago
March 27, 2018
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There is a 20% deduction on all qualified business income. The taxpayer’s qualified business income is the net amount of income and deductions for their trade or business.

Qualified business income includes income from:

Services
Rental real estate

Sole proprietorships and pass-through income from partnerships, S-corporations, estates and trusts qualify for this deduction. C corporations don’t qualify.

Carl11_2

Basically, ( and I do mean *basically*) it allows you to exclude "up to" 20% of your net *taxable* business income from being taxed. Not all businesses will qualify for it either.