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