Hi Mitch, Potentially the “$1M in QBI” business can generate a $200K Section 199A deduction. The business needs to be meet the rules for *not* being a specified service trade or business, being effective connected income (so “Earned in US” income) and needs to have W-2 wages or depreciable property. But as long as that stuff is all lined up, you should get able to get.

P.S. It would probably be a good idea to carefully check your situation against the statute and regulations’ requirements. Or if you can’t do that, work with a local tax accountant. You’re looking a deduction that’ll save you roughly $70K a year in federal income taxes.

Thanks for these informative posts. I have a somewhat related 199A question. A couple filing jointly has combined W-2 earnings from their regular jobs of roughly $200,000. On the side, the husband has a business that meets the 199A definitions under the IRS guidance. That side business has a banner year that results in $1 million in qualified business income. Can this couple take advantage of the 20 percent deduction, and how so? Thanks I’m adcance for your help!