There is a new pass-through business deduction of 20 percent for qualified business income from a partnership, S corporation, or sole proprietorship, including REITS and publicly traded partnerships.
The qualified business income deduction is new for 2018. Pursuant to Section 199A of the Internal Revenue Code, individuals and some estates and trusts can claim a deduction of up to 20 percent of income from domestic businesses operated as sole proprietorships, partnerships, S corporations, estates, or trusts. The computation of qualified business income eligible for the deduction includes qualified distributions from real estate investment trusts (REITs) and qualified income from publicly traded partnership investments. This deduction is above-the-line, meaning a taxpayer does not have to itemize deductions to claim the deduction.