We call it the Passthrough Deduction, but it is also called the Sec 199A deduction or QBI Deduction. It is the 20% of Taxable Income deduction (its not a simple 20%, there are several variables that influence the calculation) for business owners of passthrough businesses like S-corp, Partnership, and Schedule C.
There are a few pieces of information that need to be entered to make sure this is calculating accurately.
Payroll- Total Salaries, Wages (including Officer Compensation) for the year. Do not include taxes or other payroll costs.
Fixed Assets- Qualified property includes tangible property subject to depreciation under section 167 that is held, and used in the production of QBI, by the trade or business (or aggregated trades or businesses) during and at the close of the tax year, for which the depreciation period hasn't ended before the close of the tax year. Fixed assets are on cost basis not FMV.
Specified Service Business- Professions like CPA's, architects, lawyers, people who are in a profession that relies on the performance of an individual.
