The QBI Deduction is Now Permanent

Great news for small business owners! One of the most significant pieces of the 2017 tax reform—the 20% Qualified Business Income (QBI) deduction—is no longer temporary. The OBBBA has officially made Section 199A permanent.

2/5/20261 min read

Why This Matters: If you operate as a sole proprietorship, LLC, or S-Corp, you can continue to deduct up to 20% of your business income from your taxable income. For 2026, the phase-out ranges have been expanded to $200,000–$275,000 for single filers and $400,000–$550,000 for joint filers. Additionally, a new $400 minimum deduction now applies for those with at least $1,000 in QBI, even if the 20% calculation would result in less.

The Strategy: Now that the "sunset" is gone, you can make long-term business investments and compensation plans with certainty. We can help you navigate the new expanded phase-out ranges to ensure you keep more of your profit.

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