The more you explain it, the more I don’t understand it. Mark Twain had it right. Some things just tend to elude understanding.

Take tax reform. The Tax Cuts and Jobs Act (TCJA or the Act) created a complex new deduction for the owners of sole proprietorships and pass-through entities. Think partnerships, LLCs and S corporations that are taxed on their owners’ tax returns.

That deduction — the qualified business income (QBI) deduction or Section 199A— created a LOT of confusion. Also questionable strategies and advice. And plain old wrong information.

In an attempt to reduce the confusion, the IRS has since published 184 pages of additional guidance in the form of proposed regulations and a 12-question FAQ.

The more you explain it . . .


This series of blog posts on the qualified business income deduction demystifies the complex tax rules in four separate posts:

bullet:: green arrow  Introduction to the deduction: Which business owners and which businesses qualify?

bullet:: green arrow  What is qualified business income?

bullet:: green arrow  How is the qualified business income deduction calculated?

bullet:: green arrow  Planning considerations


Want to know more about the qualified business income (QBI) deduction, Section 199A, or tax reform in general?

Let us hear from you. We can help.

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