Qualified Business Income Deduction is a Tax Deduction for small business owners to deduct up to 20% of their qualified business income on their taxes.
qualified business income
Qualified business income is defined as “the net amount of qualified items of income, gain, deduction and loss with respect to any trade or business.” Broadly speaking, that means your business’s net profit. But it also means that not all business income qualifies. QBI excludes: Capital gains or losses. Dividends.