The 20 percent deduction on qualified business income remains one of the most valuable breaks for owners of pass-through entities such as sole proprietorships, partnerships, and S corporations.
Qualified Business Income Deduction Eligibility Thresholds for 2025
- $197,300 for single filers
- $394,600 for joint filers
Three Ways to Boost the Qualified Business Income Deduction before Year-End
- Harvest capital losses. Lower taxable income by offsetting gains in your investment portfolio.
- Make charitable contributions. Prepay 2026 charitable gifts or donate appreciated stock to increase itemized deductions and lower your taxable income.
- Buy business assets and place them in service. New equipment or property expensed under Section 179 or bonus depreciation can bring taxable income below the threshold and increase your deduction.
How We Can Help
Sterling Tax and Accounting is here to help your business with tax planning! Our comprehensive approach to tax planning helps reduce your overall tax liability and keep more money in your pocket. If all your accountant does is file your taxes, chances are they are making you pay more than your fair share of taxes.
Learn how to proactively save on taxes by scheduling a call with our tax planning specialists. Our tax planning, accounting & business services help you stay on track. Sterling Tax & Accounting will work with you to optimize your business and minimize your taxes. We will work to provide you and your business with the tools and resources you need to build a solid tax and business foundation. We’re a trusted CPA Firm in Sarasota, Florida. We serve clients all over the US, and proactively work to minimize their taxes. Welcome to the Sterling Standard of business! Want to learn more? Schedule a meeting with our tax planning team here: https://www.sterling.cpa/contact-us/