Qualified Business Income Deduction 2021

1 min. readlast update: 10.17.2023

You may deduct 20% of qualified business income from a partnership, S corporation, LLC, or sole proprietorship. In the case of a partnership or S corporation, the deduction applies at the partner or shareholder level. The business must be conducted within the United States. Special rules apply to specified agricultural or horticultural cooperatives.

Generally, income from rental real property held for investment purposes and reported on Schedule E (Form 1040) is not eligible for the QBID. However, you may be eligible for the QBID, if you are operating the activity as a real estate business. In addition, you may qualify for the QBID for a rental real estate enterprise if you provided 250 hours or more per year of rental services to the enterprise.

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