Stephen Slade, Tax Director of ABC Eastern Pa. member Wouch Maloney & Co., LLP recently wrote an article titled “2018 Tax Reform: The Biggest Impact on U.S. Businesses is the QBI Deduction.”
2019 regulation updates by the IRS and new tax laws passed by Congress represent the most substantive tax law changes since 1986. And, of all the tax law changes made in the past year, the Section 199A qualified business income (QBI) deduction has the biggest potential impact on business owners over the next eight years. The 20% QBI deduction is a brand-new concept that Congress created, and it is like nothing we’ve ever seen before. The final IRS regulations were issued on January 18, 2019, and the late timing had tax software companies scrambling to update their software packages as tax season commenced.