The provisional rules surrounding the Qualified Business Income (QBI) deduction can be complicated. There are several issues that must be considered. This flowchart addresses some of the most common issues that arise for an individual trying to understand if they are eligible for a QBI deduction such as:
Eligible business structures
Types of income eligible for the QBI deduction
Annual limits & phase-outs
Specified Services Trade Business categories
Impact of owning multiple businesses
Incidental to SSTB rules
De minimis rules
Updated for 2018 to include provisional rules