Under the Tax Cuts and Jobs Act, Section 199A allows taxpayers to deduct up to 20% of qualified business income for tax years 2018 through 2025. The qualified business income (QBI) deduction is available for many owners of sole proprietorships, partnerships, and S corporations, as well as some trusts and estates. The IRS has updated its list of frequently asked questions (FAQs) on the QBI deduction. One addition of note is Question 33 on the treatment of the self-employed health insurance deduction for an S corporation shareholder. The IRS says: “Generally, the self-employed health insurance deduction under section 162(l) is considered attributable to a trade or business for purposes of section 199A and will be a deduction in determining QBI. This may result in QBI being reduced at both the entity and the shareholder level.” For the full set of FAQs, click here. The QBI deduction affects businesses’ cash flow, operations, and long-term strategy, which impact valuations of a range of businesses. While the TCJA provided permanent tax relief to corporations, which saw their tax rate slashed from 35% to 21% and an end to U.S. taxes on much of their foreign profits, PTE owners got only temporary relief under the law’s individual tax provisions, which are due to expire after 2025.