Question

I read IRS Issues Final Section 199A Regulations and Defines QBI.

Could you explain in more depth how the Section 199A qualified business income (QBI) calculation works with a general partner who has guaranteed payments for both (a) services and (b) health insurance premium payments?

Answer

Yes. We’ll first walk through an example to demonstrate how you’d compute QBI for a partner in this situation.

And then we’ll throw in some tax planning ideas for how to increase the QBI so you, the partner, can get a bigger deduction. ... Log in to view full article.