How “Aggregating” Businesses Can Boost Your QBI Deduction

September 5, 2018

The IRS recently issued proposed regulations that explain how and when aggregating works for purposes of computing the QBI deduction and the deduction limitations based on W-2 wages and the basis of qualified property.

Recently proposed IRS regulations provide aggregation rules that allow eligible individuals to “aggregate” their businesses in order to maximize the new qualified business income (QBI) deduction. Specifically, they may be able to combine income, W-2 wages and the unadjusted basis immediately after acquisition (UBIA) of qualified assets from qualified businesses conducted as pass-through entities. Here’s some background material, along with examples, on how this aggregation strategy can work. Read more