When PEOs Spell Trouble

When Congress passed the Tax Cuts and Jobs Act, the legislation provided for a 20 percent deduction for domestic qualified business income from a partnership, S corporation or sole proprietorship, the Qualified Business Income (QBI) deduction under new code section 199A. While Congress included a new provision in the code, it failed to address many questions or to define certain terms critical to this deduction. Rob Nowak of member company Baker Tilly gives some tips on how to handle this deduction.