- National Federation of Independent Business issues guidance on Small Business Deduction
- Deduction applies to pass-through entities that aren’t organized as C-corporations
- Organization advocates for making the deduction permanent
Summary by Dirk Langeveld
The National Federation of Independent Business is providing guidance to small businesses on the Small Business Deduction. The deduction became law in 2017 and applies to sole proprietorships, partnerships, S-corporations, and LLCs organized as pass-through entities.
- Qualifying businesses can deduct up to 20 percent of qualified business income, up to $164,900 for individuals and $329,800 for joint filers
- NFIB says businesses should consult with their accountant to see if they are eligible
- Organization voices support for Main Street Tax Certainty Act to make the deduction permanent (it is currently set to expire in 2025)