How do small businesses owners use the new 20 percent qualified business expense deduction?
Small business owners structured as sole proprietors, S corporations and partnerships can deduct up to 20 percent of their qualified business income. That percentage can be reduced after your taxable income reaches $157,500 (or $315,000 as a married couple filing jointly). For certain businesses that provide services, such as law firms, accounting firms, and doctors’ offices, the deduction is phased out altogether when the thresholds are exceeded.
