Unlock Tax Savings with QBI Deduction
Arjun Banarjee, CPA
GovCon Accounting, Tax Planning & Preparation, US GAAP Financial Statement Audits & Reviews, DCAA Compliance , Indirect Rates , CFO Services , 401k Audits, M&A Advisory
Qualified Business Income (QBI) Deduction: What You Need to Know
As a business owner it's time you explore the Qualified Business Income (QBI) deduction. This powerful tax-saving tool can significantly slash your tax liability, freeing up cash flow for crucial business investments. Here's what you need to know to unlock its full potential:
Benefits:
1. 20% Deduction on Qualified Business Income: Imagine reducing your taxable income by a hefty 20%! With QBI deduction, eligible businesses can do just that, providing a substantial boost to your financial health.
2. Reduced Taxable Income: Say goodbye to sky-high tax bills! By leveraging QBI deduction, you can substantially lower your taxable income, keeping more of your hard-earned money where it belongs – in your pocket.
3. Lower Tax Liability: Who doesn't love paying less in taxes? QBI deduction can significantly decrease your tax liability, leaving you with more resources to fuel business growth and expansion.
4. Increased Cash Flow: Need extra capital to fund new projects or hire additional staff? QBI deduction can help by freeing up cash flow, giving your business the financial flexibility it needs to thrive.
Whats a 'Qualified Business': To qualify for the QBI deduction, your business must be engaged in a trade or business, such as:
- Manufacturing
- Wholesaling
- Retailing
- Construction
- Agriculture
- Services (except those listed as Specified Service Trades or Businesses - SSTBs)
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Whats Non-'SSTB': Ensure your business does NOT fall under the category of Specified Service Trades or Businesses (SSTBs), which include fields like:
- Healthcare
- Law
- Accounting
- Consulting
- Financial services
- Brokerage services
- Investing and investment management
- Trading
- Dealing in securities
- Any business where the principal asset is the reputation or skill of one or more employees
Amend Previous Returns:
Don't let valuable tax savings slip through the cracks! If you haven't already, consider amending your previous tax returns for the tax years 2018-2023 to take advantage of the QBI deduction.
Don't miss out on this golden opportunity to maximize your tax savings and propel your business forward. Ensure your business meets the requirements and consult with us to navigate the complexities of QBI deduction effectively.
GovCon Accounting, Tax Planning & Preparation, US GAAP Financial Statement Audits & Reviews, DCAA Compliance , Indirect Rates , CFO Services , 401k Audits, M&A Advisory
7 个月A big thanks to Steve Miller and his team who have helped some of our GovCon clients in conducting a thorough , professional evaluation whether your contracts perhaps do qualify for the deduction.