QBI Deduction: A Small Business Owner's Guide

ARTICLE | December 12, 2025

The qualified business income (QBI) deduction remains one of the most valuable tax benefits available to small business owners, offering potential savings of up to 20% on qualifying business income. Originally part of the Tax Cuts and Jobs Act of 2018, this deduction was recently made permanent, providing long-term tax planning opportunities for eligible businesses.

However, navigating the QBI deduction isn't straightforward. Complex rules govern who qualifies, how much you can deduct, and which businesses face limitations. Understanding the distinction between specified service trades or businesses (SSTBs) and other qualifying entities, along with income thresholds and wage-based limitations, is crucial for maximizing your tax savings while staying compliant.

Whether you're a sole proprietor, partnership member, or S corporation shareholder, knowing how to leverage this deduction can significantly impact your bottom line.

Read the full article here.

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