The AICPA recently sent a letter to the leadership of the Congressional tax-writing committees asking them to amend the Section 199A Qualified Business Income (QBI) deduction in preparation for a tax reconciliation bill.
By amending the Sec. 199A deduction, owners of specified service trades or businesses (SSTBs) eligible for the QBI deduction would not experience steep reductions in their QBI deduction created by the narrow QBI deduction limitation phase-in range.
The AICPA recommends that Congress broaden the QBI deduction by increasing the $50,000 (non-joint returns) and $100,000 (joint returns) amounts under section 199A(b)(3)(B) and section 199A(d)(3)(A).
The AICPA believes this amendment will prevent taxpayers within the phase-in range from experiencing significant reductions of the QBI deduction for exceeding the SSTB threshold amounts. Read more.