The Qualified Business Income (QBI) deduction can look straightforward at first, but the calculation can quickly become more complicated as income increases, multiple businesses are involved, or special limitations apply.
In this 2-hour webinar, Jason Dinesen, EA, breaks down how the QBI deduction works and walks through practical calculation examples. You'll review what qualifies as QBI, how taxable income affects the deduction, and how business income and losses factor into the calculation. The webinar also examines what happens when taxpayers cross the income thresholds and W-2 wages, business assets, and specified service trades or businesses (SSTBs) begin to affect the deduction.
Jason also explores more advanced QBI considerations, including multiple businesses, aggregation rules, and the treatment of rental real estate. The presentation includes discussion of the rental real estate safe harbor under Revenue Procedure 2019-38 and circumstances in which rental activity may or may not qualify as a trade or business for QBI purposes.
Through examples and step-by-step calculations, this webinar is designed to provide tax professionals with a clearer understanding of the rules behind the QBI deduction and the factors that can change the final calculation.
This webinar counts for 2 hours of IRS CE under the category of Federal Tax Law Related Matters.
Learning Objectives
By the end of this webinar, participants will be able to:
- Identify income that may qualify as QBI, including income from sole proprietorships, farms, pass-through entities, certain rental activities, REITs, and publicly traded partnerships.
- Explain the basic QBI deduction calculation and how taxable income, business income, related deductions, and QBI losses can affect the deduction.
- Recognize how income thresholds and phase-in ranges affect QBI calculations, including the role of W-2 wages and the unadjusted basis of business assets.
- Describe how SSTB rules can limit or eliminate the QBI deduction when taxable income exceeds applicable thresholds.
- Identify advanced QBI considerations involving multiple businesses, aggregation, and rental real estate.
About the presenter:
Jason Dinesen (EA, LPA) is a tax nerd, entrepreneur, tax expert, and a well-known presenter of continuing education courses.
Known for his sharp tax interpretations, he is one of the quickest to bring the analysis of the latest tax updates and IRS guidance to the professional community. Jason has coached over 200,000 accounting, tax, and HR professionals on various topics of accounting, individual taxation, corporate taxation, professional ethics, and much more.
He has presented dozens of webinars on Form 1099 (for 10 years on this subject!), marriage in the tax code, tax updates, the new Form W-4, payroll updates, filing status, tax credits, corporation and partnership taxation, and other issues relating to the modern-day setting.
Frequently Asked Questions
What is the Qualified Business Income (QBI) deduction?
The QBI deduction is a deduction available to certain taxpayers with qualified business income. In basic situations, the deduction generally involves comparing 20% of QBI with 20% of taxable income before the QBI deduction, with additional rules and limitations applying in some situations.
What types of income may qualify as QBI?
QBI may come from sole proprietorships and farms, certain income reported from S corporations and partnerships, some rental real estate activities, and qualified REIT dividends and publicly traded partnerships.
How do income thresholds affect the QBI deduction?
When taxable income exceeds certain thresholds, the QBI calculation becomes more complex. W-2 wages, the unadjusted basis of certain business assets, and SSTB restrictions can begin to affect the available deduction.
What are the QBI income thresholds for 2026?
For 2026, the threshold begins at $403,500 for married filing jointly, $201,775 for married filing separately, and $201,750 for single and head-of-household filers. The presentation also covers the applicable 2026 phase-in ranges.
What is an SSTB for purposes of the QBI deduction?
An SSTB, or Specified Service Trade or Business, includes certain businesses in fields such as health, law, accounting, consulting, financial services, brokerage services, investing, trading, and other specified activities. SSTB status can affect the QBI deduction when taxable income exceeds applicable thresholds.
How do business losses affect QBI?
Losses can reduce QBI. If a taxpayer's total QBI is negative, the negative amount generally carries forward and affects the calculation of QBI in future years.
Can multiple businesses be combined when calculating the QBI deduction?
In certain situations, taxpayers can elect to aggregate businesses for QBI purposes. Aggregation becomes particularly relevant when income exceeds the applicable thresholds, although specific requirements must be met before businesses can be aggregated.
