It is true that the forms 1040EZ and 1040A have disappeared from our tax vernacular, but the new form 1040 has added some true game changers.  One of the biggest shows up on line 9 of the new form 1040 and is called the "Qualified Business Income Decution".  Better know as the QBI decuction or the 20% pass-through deduction.  The bare essence of the QBI deduction is that 20% of the net income from a business and/or income property is excluded from your taxable income.  After lowering the corporate tax rate for "C" corporations to 21%, our government decided to throw a bone to the rest of the business tax filers.  The deduction does not lower your adjusted gross income (AGI), nor does is lower any self-employment tax that may be due.  Don't be lulled into the fact that it is a clear cut 20% reduction in taxable income.  Many factors play into determining if you are eligible for the QBI deduction.  Unadjusted basis of qualified property, W-2 wages and prior year loses are just a few.  We have picked apart this new tax code for business and fully understand the impact on your return.  The QBI decution has become an extension of your business and financial planning for years to come.  Don't miss out.  Let us maximize utilization of this law.


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