The goal of the Section 199A deduction is to lower the effective tax rate on business profit earned by pass through entities.

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The Section 199A deduction is designed to provide a tax break for owners of pass-through entities (such as partnerships, S corporations, and sole proprietorships) by lowering the effective tax rate on their business income. This deduction was introduced as part of the Tax Cuts and Jobs Act (TCJA) of 2017, and it allows eligible taxpayers to deduct up to 20% of their qualified business income (QBI) from their taxable income.

The Goal of the Section 199A Deduction Is to Lower