As you may be aware, the qualified business income (QBI) deduction introduced by the Tax Cuts and Jobs Act provides a valuable tax-saving opportunity for business owners like yourself.
Unfortunately, the QBI benefit expires after 2025, so there is a limited window of time to maximize this deduction.
The QBI deduction can be as much as 20 percent of qualified business income for eligible business entities, including sole proprietors, partnerships, S corporations, and certain LLCs. However, there are limitations, particularly for high-income earners or those in specified service trades or businesses (where the tax code for high-income phases out the deduction completely).
To help you make the most of this deduction, I recommend considering the following strategies:
Consider the above strategies to maximize the QBI deduction before it sunsets in 2025.
If you want to discuss your QBI strategies, please call me on my direct line at 408-778-9651.