Treasury/IRS Issue Guidance on New Business Income Deduction

Treasury/IRS Issue Guidance on New Business Income Deduction

The U.S. Treasury Department and the Internal Revenue Service (IRS) issued final regulations on Jan. 18 implementing the new qualified business income (QBI) deduction, also called the section 199A deduction.

The new QBI deduction, created by the 2017 Tax Cuts and Jobs Act (TCJA), allows many owners of sole proprietorships, partnerships, S corporations, trusts or estates to deduct up to 20 percent of their qualified business income.

For details on this deduction, including answers to frequently-asked questions, as well as information on other TCJA provisions, visit IRS.gov/taxreform

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