What is Qualified business income deduction aggregation?

Qualified business income deduction aggregation is a tax election that allows business owners operating multiple separate trades or businesses to treat them as a single aggregated group when calculating the 20% Section 199A deduction. This strategy helps overcome W-2 wage and qualified property limitations by combining the wage bases and asset holdings of multiple businesses. Under the One Big Beautiful Bill Act's permanent QBI framework, aggregation becomes even more valuable with enhanced thresholds and eased limitation calculations. Business owners must meet specific requirements, including 50% shared ownership and the five-factor appropriate economic unit test. Instead's Partnerships platform helps multi-business owners evaluate aggregation opportunities and implement optimal structures for maximizing their permanent pass-through deduction benefits.

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What is a Pass-through entity?

What is Qualified business income?

What is a W-2?

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