For purposes of the qualified business income (QBI) deduction, qualified business income does not include certain types of investment income [e.g., capital gains or capital losses, dividends, and interest income (unless properly allocable to a trade or business, such as lending].

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Qualified business income for the QBI deduction specifically excludes investment-related income such as capital gains or losses, dividends, and interest income that is not allocable to an active trade or business, according to the IRS guidelines.

For Purposes of the Qualified Business Income (QBI) Deduction, Qualified