199A Deduction Calculator 2020          
           
  * Note: Enter the amounts for each separate business unless you are aggregating businesses        
  Enter Information     ------------    
  Single or Married Enter, then tab to next cell   Helpful 199A Deduction Articles   Single    
  Taxable Income   For definition of qualified business income see "Tax Reform: Wow, New 20 Percent Deduction for Business Income" Married  
  Net Capital Gains and Dividends     For definition of qualified business income in the final regs see "IRS Issues Final Section 199A Regulations and Defines QBI"      
  Qualified Business Income (QBI)     For definition of qualified property see "Tax Reform: Wow, New 20 Percent Deduction for Business Income"      
  Specified Service Business?   For aggregration of businesses see "Caution: 199A Calculator Is Business-by-Business without Aggregation"      
  Wages Paid by Business   For multiple rental business see "How to Handle Multiple Rental Activities and the 199A Deduction"      
  Qualified Property in Business     For definition of service business see "IRS Section 199A Final Regs Shed New Light on Service Businesses" ------------    
            Yes    
  Results     No    
  Your 199A Deduction:          
        Other 199A Deduction Calculators Phase-In Taxable Income Threshold      
        2019 Calculator Status Beginning Ending      
        2021 Calculator Single 163,300 213,300      
See Below for Calculation Details       Married 326,600 426,600      
         
Calculation if Below Phaseout Range        
  Lesser of:          
  20% of QBI        
  20% of *Defined Taxable Income        
  Deduction Limit        
  * Defined Taxable = Taxable Income - Net Capital Gains          
         
Calculation for Non-Service Business If in Phaseout Range        
  20% of QBI        
  Greater of Wage and Asset        
  Difference Between QBI and Greater of Wages/Assets        
  Reduction to QBI        
  Phaseout Deduction        
             
         
Calculation for Non-Service Business Above Phaseout      
  20% of QBI (or Defined Taxable Income if lower)      
  50% of Wages      
  25% of Wages      
  2.5% of Assets      
  Greater of 50% Wages vs. 25% Wages & Assets      
  Lesser of QBI (or Defined Taxable Income) and Wage/Asset      
       
Calculation for Specified Service Business If in Phaseout Range          
  20% of QBI (multiplied by applicable percentage)        
  Greater of Wage and Asset (multiplied by applicable percentage)      
  Difference Between QBI and Greater of Wages/Assets      
  Reduction to QBI      
  Phaseout Deduction      
       
Calculation for Specifed Service Business If Phased Out      
  No Deduction Allowed $0      
         
Copyright 2020 by W. Murray Bradford, CPA, Ver. 1.1