What is Section 199a?

The 20% Qualified Business Income Deduction (QBI Deduction) is one of the many changes taxpayers will spot on their tax returns come April 15th. It was written into the tax code under IRS Code Section 199A was introduced as part of the changes implemented under Tax Cuts and Jobs Act at the end of 2017. This tax law allows business owners to take a deduction that can reduce their business income by up to 20%, a benefit that many will want to take advantage of. Qualifying for the deduction can be tricky, though, so it is important to understand the fundamentals before writing it into your tax plan for 2019.