The Internal Revenue Service (IRS) recently issued final regulations and related guidance on the new qualified business income (QBI) deduction created by the 2017 Tax Cuts and Jobs Act. Eligible business owners and taxpayers can now deduct up to 20 percent of their qualified business income or real estate investment trust dividends on their federal tax return beginning after December 31, 2017.

The QBI deduction generally applies to eligible taxpayers with 2018 taxable income that is at or below $315,000 (joint returns) or $157,500 (other filers). Taxpayers with higher income are still eligible, but with certain limitations.

Details and additional resources on tax reform provisions are available here.