Answer:
Which pass-through entities qualify. Some businesses, called pass-through entities, do not pay the corporate income tax rates. Instead, the business' income is passed onto the individual owners, who divide it up and pay tax on it on their individual tax returns, along with any other personal income they have.
Under the Tax Cuts and Jobs Act, pass-through business entity owners can potentially deduct 20% of their business income.
You Must Have a Pass-Through Business. ...
You Must Have Qualified Business Income. ...
You Must Have Taxable Income. ...
20% Deduction for Taxable Income Below Annual Threshold.
