The QBI Deduction: Sunset is Coming

Many of you have benefited from the Qualified Business Income (QBI) deduction over the last few years. This deduction (also known as the 20% pass-through deduction) helped reduce the taxable income for many small business owners—essentially giving you a discount on your business income.

However, this tax break is scheduled to end after 2025 unless Congress extends it.What does that mean?

• Your tax bill could increase starting in 2026, even if your income stays the same.

• Strategic tax planning will become even more important as we approach the sunset.

We’ll keep an eye on updates and will start working with many of you this year and next to create a smart game plan. Proactive planning now could soften the impact later!