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Applicable taxpayer

3 rules

For purposes of this subsection—

(A) In general The term “applicable taxpayer” means, with respect to any taxable year, a taxpayer whose aggregate qualified business income with respect to all active qualified trades or businesses of the taxpayer for such taxable year is at least $1,000.

(B) Active qualified trade or business The term “active qualified trade or business” means, with respect to any taxpayer for any taxable year, any qualified trade or business of the taxpayer in which the taxpayer materially participates (within the meaning of section 469(h)).

in view

Whole section

Encodings · 3

active_qbi_minimum_threshold_base26 USC § 199A (i)(2) (A) · parameter

26 USC 199A(i)(2)(A)

name: active_qbi_minimum_threshold_base
kind: parameter
dtype: Money
unit: USD
source: 26 USC 199A(i)(2)(A)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: amount
        source:
          corpus_citation_path: us/statute/26/199A
          excerpt: at least $1,000
versions:
  - effective_from: '2026-01-01'
    formula: '1000'

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active_qbi_minimum_threshold26 USC § 199A (i)(2) · derived

26 USC 199A(i)(2)-(3)

name: active_qbi_minimum_threshold
kind: derived
entity: TaxUnit
dtype: Money
period: Year
unit: USD
source: 26 USC 199A(i)(2)-(3)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: formula
        source:
          corpus_citation_path: us/statute/26/199A
          excerpt: >-
            the $1,000 amount ... shall each be increased ... rounded to the
            nearest multiple of $5
versions:
  - effective_from: '2026-01-01'
    formula: >-
      active_qbi_minimum_threshold_base

      + floor(((active_qbi_minimum_threshold_base *
      minimum_deduction_cost_of_living_adjustment) /
      minimum_deduction_rounding_multiple) + 0.5) *
      minimum_deduction_rounding_multiple

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applicable_taxpayer_for_minimum_active_qbi_deduction26 USC § 199A (i)(2) · derived

26 USC 199A(i)(2)

name: applicable_taxpayer_for_minimum_active_qbi_deduction
kind: derived
entity: TaxUnit
dtype: Judgment
period: Year
source: 26 USC 199A(i)(2)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: condition
        source:
          corpus_citation_path: us/statute/26/199A
          excerpt: >-
            aggregate qualified business income with respect to all active
            qualified trades or businesses ... is at least $1,000
versions:
  - effective_from: '2026-01-01'
    formula: >-
      aggregate_qualified_business_income_from_active_qualified_trades_or_businesses
      >= active_qbi_minimum_threshold

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▸rulespec code

Shown source

statutes/26/199A.yaml

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Rules

qbi_deduction_rate

Parameter

source: 26 USC 199A(a)(2), (b)(1)(B), (b)(2)(A)

- name: qbi_deduction_rate
  kind: parameter
  dtype: Rate
  source: 26 USC 199A(a)(2), (b)(1)(B), (b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: 20 percent
  versions:
    - effective_from: '2026-01-01'
      formula: '0.20'

wage_limit_rate

Parameter

source: 26 USC 199A(b)(2)(B)(i)

- name: wage_limit_rate
  kind: parameter
  dtype: Rate
  source: 26 USC 199A(b)(2)(B)(i)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: 50 percent of the W–2 wages
  versions:
    - effective_from: '2026-01-01'
      formula: '0.50'

alternate_wage_limit_rate

Parameter

source: 26 USC 199A(b)(2)(B)(ii)

- name: alternate_wage_limit_rate
  kind: parameter
  dtype: Rate
  source: 26 USC 199A(b)(2)(B)(ii)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: 25 percent of the W–2 wages
  versions:
    - effective_from: '2026-01-01'
      formula: '0.25'

qualified_property_limit_rate

Parameter

source: 26 USC 199A(b)(2)(B)(ii)

- name: qualified_property_limit_rate
  kind: parameter
  dtype: Rate
  source: 26 USC 199A(b)(2)(B)(ii)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: >-
              2.5 percent of the unadjusted basis immediately after acquisition of all qualified
              property
  versions:
    - effective_from: '2026-01-01'
      formula: '0.025'

qbi_phasein_range_other

Parameter

source: 26 USC 199A(b)(3)(B)(i)(I), (b)(3)(B)(ii)(II)

- name: qbi_phasein_range_other
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 199A(b)(3)(B)(i)(I), (b)(3)(B)(ii)(II)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: threshold amount plus $75,000
  versions:
    - effective_from: '2026-01-01'
      formula: '75000'

qbi_phasein_range_joint

Parameter

source: 26 USC 199A(b)(3)(B)(i)(I), (b)(3)(B)(ii)(II)

- name: qbi_phasein_range_joint
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 199A(b)(3)(B)(i)(I), (b)(3)(B)(ii)(II)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: $150,000 in the case of a joint return
  versions:
    - effective_from: '2026-01-01'
      formula: '150000'

threshold_amount_base

Parameter

source: 26 USC 199A(e)(2)(A)

- name: threshold_amount_base
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 199A(e)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: The term “threshold amount” means $157,500
  versions:
    - effective_from: '2026-01-01'
      formula: '157500'

threshold_amount_joint_multiplier

Parameter

source: 26 USC 199A(e)(2)(A)

- name: threshold_amount_joint_multiplier
  kind: parameter
  dtype: Decimal
  source: 26 USC 199A(e)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: 200 percent of such amount in the case of a joint return
  versions:
    - effective_from: '2026-01-01'
      formula: '2'

cooperative_reduction_rate

Parameter

source: 26 USC 199A(b)(7)(A)

- name: cooperative_reduction_rate
  kind: parameter
  dtype: Rate
  source: 26 USC 199A(b)(7)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: 9 percent of so much of the qualified business income
  versions:
    - effective_from: '2026-01-01'
      formula: '0.09'

cooperative_wage_reduction_rate

Parameter

source: 26 USC 199A(b)(7)(B)

- name: cooperative_wage_reduction_rate
  kind: parameter
  dtype: Rate
  source: 26 USC 199A(b)(7)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: 50 percent of so much of the W–2 wages
  versions:
    - effective_from: '2026-01-01'
      formula: '0.50'

minimum_active_qbi_deduction_base

Parameter

source: 26 USC 199A(i)(1)(B)

- name: minimum_active_qbi_deduction_base
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 199A(i)(1)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: $400
  versions:
    - effective_from: '2026-01-01'
      formula: '400'

active_qbi_minimum_threshold_base

Parameter(A) in text ↖

source: 26 USC 199A(i)(2)(A)

- name: active_qbi_minimum_threshold_base
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 199A(i)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: at least $1,000
  versions:
    - effective_from: '2026-01-01'
      formula: '1000'

minimum_deduction_rounding_multiple

Parameter

source: 26 USC 199A(i)(3)

- name: minimum_deduction_rounding_multiple
  kind: parameter
  dtype: Money
  unit: USD
  source: 26 USC 199A(i)(3)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: amount
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: rounded to the nearest multiple of $5
  versions:
    - effective_from: '2026-01-01'
      formula: '5'

qbi_phasein_range

Derived

source: 26 USC 199A(b)(3)(B)

- name: qbi_phasein_range
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(b)(3)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: $75,000 ($150,000 in the case of a joint return)
  versions:
    - effective_from: '2026-01-01'
      formula: >-
        if filing_status == 1 or filing_status == 4: qbi_phasein_range_joint else:
        qbi_phasein_range_other

threshold_amount

Derived

source: 26 USC 199A(e)(2)

- name: threshold_amount
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(e)(2)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: $157,500 (200 percent of such amount in the case of a joint return)
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        if filing_status == 1 or filing_status == 4:
            threshold_amount_base * threshold_amount_joint_multiplier
        else:
            threshold_amount_base

trade_or_business_wage_property_limit

Derived

source: 26 USC 199A(b)(2)(B)

- name: trade_or_business_wage_property_limit
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(b)(2)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: >-
              the greater of— (i) 50 percent of the W–2 wages ... or (ii) the sum of 25 percent of
              the W–2 wages ... plus 2.5 percent of the unadjusted basis
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        max(
            wage_limit_rate * qualified_trade_or_business_w2_wages,
            alternate_wage_limit_rate * qualified_trade_or_business_w2_wages
            + qualified_property_limit_rate * qualified_trade_or_business_unadjusted_basis
        )

trade_or_business_qbi_amount_before_limits

Derived

source: 26 USC 199A(b)(2)(A)

- name: trade_or_business_qbi_amount_before_limits
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(b)(2)(A)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: 20 percent of the taxpayer’s qualified business income
  versions:
    - effective_from: '2026-01-01'
      formula: qbi_deduction_rate * qualified_business_income

trade_or_business_excess_amount

Derived

source: 26 USC 199A(b)(3)(B)(iii)

- name: trade_or_business_excess_amount
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(b)(3)(B)(iii)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: >-
              the excess of— (I) the amount determined under paragraph (2)(A) ... over (II) the
              amount determined under paragraph (2)(B)
  versions:
    - effective_from: '2026-01-01'
      formula: max(0, trade_or_business_qbi_amount_before_limits - trade_or_business_wage_property_limit)

trade_or_business_phasein_reduction

Derived

source: 26 USC 199A(b)(3)(B)(ii)

- name: trade_or_business_phasein_reduction
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(b)(3)(B)(ii)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: >-
              bears the same ratio to the excess amount as ... taxable income ... exceeds the
              threshold amount, bears to ... $75,000 ($150,000 in the case of a joint return)
  versions:
    - effective_from: '2026-01-01'
      formula: >-
        trade_or_business_excess_amount

        * min(1, max(0, taxable_income_computed_without_section_199A - threshold_amount) /
        qbi_phasein_range)

cooperative_reduction

Derived

source: 26 USC 199A(b)(7)

- name: cooperative_reduction
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(b)(7)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: shall be reduced by the lesser of— (A) 9 percent ... or (B) 50 percent
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        min(
            cooperative_reduction_rate * max(0, qualified_business_income_allocable_to_qualified_cooperative_payments),
            cooperative_wage_reduction_rate * max(0, w2_wages_allocable_to_qualified_cooperative_payments)
        )

trade_or_business_deductible_amount

Derived

source: 26 USC 199A(b)(2), (b)(3), (b)(7)

- name: trade_or_business_deductible_amount
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(b)(2), (b)(3), (b)(7)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: >-
              the amount determined under this paragraph ... the lesser of ... Modifications to
              limit based on taxable income ... Special rule with respect to income received from
              cooperatives
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        max(
            0,
            (
                if taxable_income_computed_without_section_199A <= threshold_amount:
                    trade_or_business_qbi_amount_before_limits
                else:
                    if taxable_income_computed_without_section_199A <= threshold_amount + qbi_phasein_range:
                        trade_or_business_qbi_amount_before_limits - trade_or_business_phasein_reduction
                    else:
                        min(trade_or_business_qbi_amount_before_limits, trade_or_business_wage_property_limit)
            )
            - cooperative_reduction
        )

qualified_reit_and_ptp_component

Derived

source: 26 USC 199A(b)(1)(B)

- name: qualified_reit_and_ptp_component
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(b)(1)(B)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: >-
              20 percent of the aggregate amount of the qualified REIT dividends and qualified
              publicly traded partnership income
  versions:
    - effective_from: '2026-01-01'
      formula: >-
        qbi_deduction_rate * (qualified_reit_dividends +
        qualified_publicly_traded_partnership_income)

combined_qualified_business_income_amount

Derived

source: 26 USC 199A(b)(1)

- name: combined_qualified_business_income_amount
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(b)(1)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: >-
              the sum of the amounts determined under paragraph (2) ... plus ... qualified REIT
              dividends and qualified publicly traded partnership income
  versions:
    - effective_from: '2026-01-01'
      formula: trade_or_business_deductible_amount + qualified_reit_and_ptp_component

qbi_taxable_income_limit

Derived

source: 26 USC 199A(a)(2)

- name: qbi_taxable_income_limit
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(a)(2)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: >-
              20 percent of the excess (if any) of— (A) the taxable income ... over (B) the net
              capital gain
        - path: versions[0].formula
          kind: import
          import:
            target: us:statutes/26/1/h#net_capital_gain
            output: net_capital_gain
            hash: sha256:51290fac8ece62a820f0deddcbc0471467c13ee31b62b52b45c8798232b22357
  versions:
    - effective_from: '2026-01-01'
      formula: qbi_deduction_rate * max(0, taxable_income_computed_without_section_199A - net_capital_gain)

qbi_deduction_before_minimum_active_qbi

Derived

source: 26 USC 199A(a)

- name: qbi_deduction_before_minimum_active_qbi
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(a)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: In the case of a taxpayer other than a corporation
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: >-
              there shall be allowed as a deduction ... the lesser of— (1) the combined qualified
              business income amount ... or (2) ...
  versions:
    - effective_from: '2026-01-01'
      formula: |-
        if taxpayer_is_corporation:
            0
        else:
            max(0, min(combined_qualified_business_income_amount, qbi_taxable_income_limit))

active_qbi_minimum_threshold

Derived

source: 26 USC 199A(i)(2)-(3)

- name: active_qbi_minimum_threshold
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(i)(2)-(3)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: >-
              the $1,000 amount ... shall each be increased ... rounded to the nearest multiple of
              $5
  versions:
    - effective_from: '2026-01-01'
      formula: >-
        active_qbi_minimum_threshold_base

        + floor(((active_qbi_minimum_threshold_base * minimum_deduction_cost_of_living_adjustment) /
        minimum_deduction_rounding_multiple) + 0.5) * minimum_deduction_rounding_multiple

minimum_active_qbi_deduction_amount

Derived

source: 26 USC 199A(i)(1), (i)(3)

- name: minimum_active_qbi_deduction_amount
  kind: derived
  entity: TaxUnit
  dtype: Money
  period: Year
  unit: USD
  source: 26 USC 199A(i)(1), (i)(3)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us/statute/26/199A
            excerpt: the $400 amount ... shall each be increased ... rounded to the nearest multiple of $5
  versions:
    - effective_from: '2026-01-01'
      formula: >-
        minimum_active_qbi_deduction_base

        + floor(((minimum_active_qbi_deduction_base * minimum_deduction_cost_of_living_adjustment) /
        minimum_deduction_rounding_multiple) + 0.5) * minimum_deduction_rounding_multiple