(03-30-2024, 12:11 PM)InvalidContentWasFoundStarting Wrote:

(03-30-2024, 09:42 AM)The Real Marty Wrote: I think he's talking about the 20% deduction on "qualified business income" which is from the 2017 tax act.  Form 8995.

The Qualified Business Income Deduction is not limited to income from pass thru entities.
Sole proprietors who file Form 1040 Sch C may also qualify for that 20% QBID.

I can't remember whether or not rental property owners who file Form 1040 Sch E or farmers who file Form 1040 Sch F also qualify for that 20% QBID. 
I would hope so since Sch E and Sch F work very similar to Sch C.
{Quick Edit: unless I'm misinterpreting the QBI Flowchart from the IRS web page https://www.irs.gov/instructions/i8995 it appears that Sch E Rental income and Sch F Farming income do qualify for QBID.}

But QBID certainly isn't limited to pass thru income.

I didn't say this deduction was only for "pass through" income. I'm not an accountant.  I don't know the whole code.  I only know the part I pay.  I only know that our taxes got more complicated and also lower after 2017.  Glad to keep the extra money, but it does feel dishonest as we arbitrarily say, "this small amount of money was my salary" and "this larger amount of money passes through to me as the owner of the business.". There's a vague threat of audit if we don't portion it out right also. But what's right?

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