Section 199A QBI Deduction Calculator
Calculate the Qualified Business Income (QBI) deduction for pass-through businesses. Understand wage and property limitations, SSTB restrictions, and phase-in thresholds.
Business Information
Net income from sole proprietorship, partnership, or S-corp (before QBI deduction)
Wage & Property Information
Required for wage limitation calculation above threshold
Unadjusted Basis Immediately After Acquisition - original purchase price of business property
Specified Service Trade or Business (SSTB)
Taxable Income Analysis
Taxable Income:$235400.00
Threshold Status:In Phase-In Range
Phase-In Start:$191950
Phase-In End:$243725
Wage & Property Limits
Wage-Only (50%):$40000.00
Wage + Property:$23750.00
Higher Limit:$40000.00
Taxable Income Limit:$47080.00
Final QBI Deduction
$33568.32
Partial wage/property limit (80%)
Effective Rate:16.78% of QBI
Estimated Tax Savings:$7385.03
Section 199A Rules
- Basic Deduction: 20% of qualified business income from pass-through entities.
- Income Limit: Deduction cannot exceed 20% of taxable income (before QBI).
- Below Threshold: Full 20% deduction, no wage/property limit ($191,950 Single).
- Above Threshold: Limited by wage/property test: 50% of W-2 wages OR 25% wages + 2.5% UBIA property.
- SSTB: Specified service businesses face deduction phase-out above threshold.
- SSTB Types: Health, law, accounting, actuarial, performing arts, consulting, financial, brokerage, athletics.
- UBIA Property: Original purchase price, not depreciated value. Must be held at least 3+ years.
- Strategy: Hire employees, acquire business property, or convert to C-Corp for SSTBs above threshold.