How the Qualified Business Income Deduction Works in 2026

Episode 95 of The Tax Strategy Podcast explores the Qualified Business Income (QBI) deduction under Section 199A. Lucas and Luna break down how the deduction works for pass-through business owners in 2026, including the phaseout thresholds, the impact of the TCJA sunset, and the difference between specified service trades or businesses and other enterprises. They walk through a concrete example: a single filer earning $220,000 in net business income from a consulting practice, showing exactly how the deduction phases out and what strategies can preserve it. The hosts also clarify common misconceptions—like whether rental real estate qualifies and how wages paid to a spouse affect the calculation. If you're self-employed, own an LLC, or run a partnership, this episode gives you the specific numbers and rules you need to plan for tax year 2026. #QBI #Section199A #QualifiedBusinessIncome #PassThroughDeduction #TCJA #TaxPlanning #SelfEmployed #LLC #Partnership #SmallBusiness #Finance #TaxStrategy #FexingoBusiness #BusinessPodcast #Podcast #Accounting #Deduction #TaxReform Keep every episode free: buymeacoffee.com/fexingo