Home / EA Course / SEE 2

The qualified business income deduction

SEE 2 Chapter 16 · IRS outline 2B12, 2E9

Theo learned the qualified business income deduction in his Part 1 studies, from the individual's side. Now he has to work it from the business's side. Daniel, Mira, Jon and Walt all want their 20%. But Dr. Lena Park, a dentist client, has a different kind of business, and Walt's rental company next door raises its own question. Nadia gives Theo a three-question checklist: How much is the taxable income? Is it a specified service? What are the wages and property?

In this chapter

1. What counts as qualified business income
2. The basic calculation
3. W-2 wages and UBIA
4. Specified service trades or businesses
5. Aggregation, rentals and losses
6. Entity reporting and Forms 8995 and 8995-A

This chapter has 6 lessons and 52 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• QBI
• thresholds
• W-2 wage and UBIA limits
• specified service businesses
• aggregation
• rental safe harbor
• loss carryovers

Chapter 15: Travel, cars, interest, bad debts and the home office · Chapter 17: Casualties, net operating losses and business credits