The Section 199 deduction is eliminated for tax years after 2018, for non-corporate taxpayers and for tax years after 2019 for C corporation taxpayers. Under the Tax Cuts and Jobs Act of 2017, a Section 199A was enacted into law allowing a non-corporate taxpayer a deduction for QBI for taxable years after December 31, 2017, for 10 years. Under the new law, owners of business entities, which are not taxed as "C" corporations, are eligible for a 20% Qualified Business Income (QBI) deduction. The deduction for QBI may be limited and/or subject to phase-out, depending on the taxable income of the individual as well as such facts as the type of business, amount of wages paid by the business, and amount of capital assets owned by the business.
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