Question

What is considered qualified business income?

Answer 1

Qualified business income refers to the net amount of qualified items of income, gain, deduction and loss with respect to any qualified trade or business that is owned by a taxpayer. It should be noted that qualified business income does not include amounts in the form of any qualified cooperative income, any qualified REIT dividends, or any qualified publicly traded partnership income.

In cases where the net qualified amount of income, gain and deduction with regards to qualified trades and businesses is below zero than the amount will be regarded as a loss in the next taxable year and this amount will be treated as a loss from a qualified trade or business.