Calculating W-2 Wages for Limitations on the QBI Deduction

September 24, 2018
W-2 Wages

For the new QBI deduction for pass-through entities, the details bring about heavy complexities.

Recently proposed IRS regulation on the new deduction for qualified business income (QBI) provide guidance on how to compute limitations on the deduction based on W-2 wages. As you’ve probably heard, the QBI deduction is complicated, and numerous rules and restrictions apply.

Important note: While new QBI deduction regulation are in proposed form, taxpayers can rely on them until final regulations are issued.  Read more