QUALIFIED BUSINESS INCOME
01.Core Concepts
• QBI is the net amount of qualified items of income from eligible pass- through entities. • QBI does not include: • Capital gains and losses • Dividends • Interest not allocable to a trade or business • Commodities transactions • Reasonable compensation for S corporation owners • Guaranteed payments to partners for services rendered • Tip income deducted under new Sec. 224 (created under OBBBA for tax years 2025-2028)