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 QBI deduction offers up to a 20% deduction on income from pass-through entities like sole proprietorships, S-corps, and partnerships.

- For 2024, the deduction is simplest for taxpayers with taxable income below $191,950 (Single) or $383,900 (Married Filing Jointly).

- Above these income thresholds, the deduction for Specified Service Trades or Businesses (SSTBs) like law and accounting is phased out and eventually eliminated.

- For non-SSTBs above the income thresholds, the deduction is limited by a formula based on W-2 wages and the unadjusted basis of business property.

- A final overall limit applies: the QBI deduction cannot exceed 20% of taxable income minus net capital gains, a common exam trap.

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