The TCJA allows qualifying noncorporate owners of pass-through entities to deduct as much as 20% of qualified business income.  But once taxable income exceeds $315,000 for married couples filing jointly or $157,500 for other filers, a wage limit begins to phase in.  When the limit is fully phased in, the deduction generally can’t exceed the greater o0f the owner’s share of a) 50% of the amount of W-2 wages paid to employees during the tax year, or b) the sum of 25% of W-2 wages plus 2.5% of the cost of qualified business property.  Contact us to learn more.