Small Business Tax Calculator
Calculate small business taxes, Section 179 equipment depreciation write-offs, and Section 199A Qualified Business Income (QBI) 20% tax savings.
QBI Tax Deduction & Savings
Small Business QBI & 179 Formula
Profit Before QBI = Revenue − Expenses − Section 179 | QBI Deduction = Profit × 20% | Taxable Business Income = Profit − QBI Deduction | QBI Tax Savings = QBI Deduction × Tax Rate %- Section 179 Expensing: Allows businesses to deduct the full purchase price of qualifying equipment, machinery, and software during the tax year it is placed in service.
- Section 199A QBI Deduction: Eligible sole proprietorships, partnerships, and S-Corps can deduct up to 20% of qualified business income, effectively reducing their federal income tax rate by one-fifth.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Assumes business qualifies for the full 20% QBI deduction under statutory taxable income phaseout thresholds.
Frequently Asked Questions
Who qualifies for the Section 199A QBI 20% deduction?
Owners of pass-through entities (sole proprietors, partners, LLC members, S-Corp shareholders) qualify. Specified Service Trades or Businesses (law, healthcare, accounting, consulting) face phaseout limits if taxable income exceeds $191,950 (Single) or $383,900 (Married Joint) in 2024.
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