Question

The deduction for qualified business income received a lot of praise and criticism in the press from the time it was introduced in November 2017 to the present. Find reliable articles that explain at least two arguments for and against the QBI deduction. Explain whether you agree with these positions and why.
Remember to MLA cite any sources used 
1

Answer 1

answer-

Q.B.I. is generally defined as the net amount of qualified items of "income, gain, deduction, and loss" that are "effectively connected to a qualified trade or business in the U.S." To be included in the computation of Q.B.I., the items of income, gain, deduction, and loss must be recognized when determining taxable income for the tax year. Q.B.I. does not include qualified R.E.I.T. dividends or qualified P.T.P. income .

I agree with and in support of QBI because it provide significant tax reduction to individuals in business like real estate or other trade.also it saves the income and compensation income of employees because Wages and compensation income earned by any employee are not Q.B.I. and are not eligible for the new deduction no matter the amount – even if the income is below the threshold. Therefore, there is an incentive to work as an independent contractor. However, changing an individual's status in the company may not provide access to the deduction. It saves the interest of shareholders in the company who has minor number of shares in the ownership of the company.

refernece-https://www.withum.com/resources/qbi-deduction-in-real-estate-industry/