Permanent QBI deduction provides some tax planning certainty

by | Jul 17, 2025

ARTICLE | July 17, 2025

In this intriguing article, the recent changes brought by the One Big Beautiful Bill Act (OBBBA) are thoroughly examined. The Act has brought about significant modifications in the tax landscape, particularly for partnerships, S corporations, and sole proprietors. The key change being highlighted is the permanence of the 20% qualified business income deduction under section 199A, which was previously set to expire at the end of 2025. This permanent status now provides a level of long-term tax planning certainty that did not exist before.

The article not only explores the impact of this permanence, but also dives into the other technical changes enacted by the OBBBA, such as the expanded phase-in thresholds and the introduction of a minimum deduction. It provides a detailed analysis on what these changes mean for businesses and offers guidance on what businesses should do now and consider over the long term. The article does a commendable job of breaking down complex tax legislation into an understandable format. To learn more about the changes brought by the One Big Beautiful Bill Act, click the link below.

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