Do Individuals Qualify for Qbi Deduction?
The 2/7 rule can help you determine how to adjust your wages in order to maximize your QBI deduction. Note that there is an additional computation considering company assets, but that calculation is beyond the scope of this article and will not be considered in the following examples.
How is the QBI deduction calculated for SStB?
Step 4: If your business is an SSTB with income in the phase-out range, you’ll calculate your deduction by taking 20 percent of your qualified business income and applying the limitation of: Compare these calculations to 20 percent of your QBI and deduct the smaller amount.
