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Income Tax Planning
Chapter 7: Itemized Deductions/THE QBI DEDUCTION
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 7: Itemized Deductions

THE QBI DEDUCTION

01.Core Concepts

• In general, the QBI deduction is equal to the lesser of: • 20% of Qualified Business Income, or • 20% of the taxpayer’s adjusted taxable income • Adjusted taxable income = taxable income from all sources, after taking above-the-line deductions and taking either the standard or itemized deductions, reduced by net capital gains. • Includes spouse’s income if MFJ