Calculate qualified business income

Qualified business income (QBI) is the net amount of qualified income, gain, deduction, and loss related to the qualified trade or business. It doesn't include certain types of investment-related items, such as:
  • Capital gains or losses
  • Dividend income
  • Interest income other than interest income that's allocable to the trade or business
  • Employee compensation paid to the taxpayer by the trade or business
  • Guaranteed payments to a partner
The qualified business income deduction (QBID) calculation considers qualified real estate investment trust (REIT) dividends, qualified cooperative dividends, and qualified publicly traded partnership (PTP) income separately from QBI. These items are also excluded when calculating QBI.
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