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Hotta Liesenberg Saito LLP
970 West 190th Street, Suite 900
Torrance, CA 90502-1052
Phone: 424-246-2000
Fax: 424-246-2005
September 2026
Pass-Through Income Deduction
Under the One Big Beautiful Bill Act (OBBBA), owners of certain pass-through businesses can continue to claim a deduction of up to 20% of qualified business income (QBI)—plus 20% of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. This tax break was previously set to expire at the end of 2025. The deduction phases out between $403,500 —$553,500 (joint filers), $201,750 —$276,750 (single filers), and $201,775 — $276,775 (married filing separately) — based on taxable income, not including the QBI deduction. Above these thresholds, the deduction depends on whether you’re in a specified service trade or business (SSTB).
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