Enrolled Agent Exam [Part 1] 40, QBI Deduction - Limitations and Phase-Outs

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The critical 2025 QBI income thresholds ($197,300 Single / $394,600 MFJ) that trigger the complex limitations. • How the QBI deduction for a Specified Service Trade or Business (SSTB) is completely eliminated if taxable income exceeds the phase-out range. • The two-part calculation for the W-2 wage and unadjusted basis of qualified property (UBIA) limitation for taxpayers above the threshold. • The common exam trap of choosing the lesser of the 20% QBI calculation and the greater of the wage/property limitation formulas. • The conceptual purpose of the aggregation rule, which allows combining businesses to potentially increase the QBI deduction. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep