Video: Qualified Business Income

In this lesson, Nick Palazzolo, CPA, demystifies the intricacies of Qualified Business Income (QBI), making sense of how small businesses and individuals can benefit from the 20% income deduction. Drilling into the finer points, he clarifies the types of business income that qualify for the QBI deduction, how it stimulates the economy by leveling the playing field for small businesses versus corporate giants, and the critical distinction between QBI and passive income types. Nick breaks down the calculation of the QBI deduction in an engaging manner, ensuring comprehension through formulas, practical examples, and relatable explanations, highlighting the impact of taxpayer income levels on the reduction and phase-outs of the QBI deduction. This thorough walkthrough of QBI deduction limits and qualifications empowers viewers with a foundational understanding, complemented by strategies for effectively utilizing these concepts in exam preparation.