QBI for Pass-Throughs: Keep Your 20%
Owners of S-Corps, partnerships, and some LLCs may qualify for the Qualified Business Income (QBI) deduction—up to 20% of qualified income—subject to limits (income thresholds, W-2 wage/property tests, and SSTB rules for certain service businesses).
Levers to check before year-end
- Reasonable compensation (S-Corp): Pay a defensible W-2; then consider distributions.
- W-2 wage/base: In higher-income ranges, wages and/or qualified property can impact QBI.
- Entity separation: Keep non-qualifying activities separate from QBI-friendly lines where appropriate.
- Retirement & timing: Pre-year-end contributions and expense timing can help thresholds.
Simple process
- Forecast income now (not in March).
- True-up S-Corp wages to a reasonable level.
- Evaluate whether wages/property meet QBI formulas.
How Black Inc can help
We’ll run QBI diagnostics, set the right S-Corp wage, and plan contributions/timing so you maximize the deduction without audit risk.
Black Inc Tax — Los Ángeles + Virtual (EE. UU. y Canadá)
Same-day consults. Clear action plan. Compliance done right.
📞 (323) 364-5589 • ✉️ Message us to get started today.