How the Qualified Business Income Deduction Works for 2026

Episode 69 of The Tax Strategy Podcast breaks down the Section 199A Qualified Business Income deduction — the 20 percent deduction for pass-through business owners. Lucas explains how the deduction phases out above taxable income thresholds ($383,900 married filing jointly in 2026), how specified service trades or businesses like law and consulting get restricted, and why a real-world example — a solo CPA earning $400,000 — loses the deduction entirely while an electrician earning the same keeps it. Luna asks about rental real estate eligibility and whether the deduction is permanent under TCJA sunset rules. The hosts clarify that 199A sunsets after 2025 unless Congress extends it, making 2026 a critical planning year. They also touch on how W-2 wage and property limits cap the deduction for high earners. Practical takeaway: if you run a side business or own an S-corp, check your taxable income before year-end to see if you can still benefit. #Section199A #QualifiedBusinessIncomeDeduction #QBI #PassThrough #TaxPlanning #SmallBusiness #SelfEmployed #SSTB #SpecifiedServiceTradeOrBusiness #TCJASunset #2026Tax #BusinessTax #TaxDeduction #Finance #FexingoBusiness #BusinessPodcast #TaxStrategy #EntrepreneurTips Keep every episode free: buymeacoffee.com/fexingo