A deduction of up to 20 percent of qualified business income from pass-through businesses, subject to income limits and industry restrictions.
For many owners it is the largest deduction on the return. Above the income thresholds, specified service businesses lose it and others face wage and property limits, which is where entity and compensation planning come in.
Yes. Wages paid to the owner are not qualified business income, so a higher salary lowers the deduction while reducing self-employment tax. The two effects are balanced in the S corp analysis.
Last reviewed September 15, 2026. Tax rules change; confirm current law before acting.
A confidential consultation. Tell us what you have, and we will tell you what applies and what it costs.
Hourly billing, estimated up front, with a deposit applied to the work.
Fill this out and we will reach out to schedule your consultation.
