{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Wealthyist","title":"Wealthyist E34 | Understanding How OBBBA Affects QBI & QSBS (PT 1)","html":"","width":"100%","height":180,"duration":815,"description":" Exploring key tax provisions like Qualified Business Income (QBI) deduction and Qualified Small Business Stock (QSBS), and their implications for starting and selling a business, as influenced by the \"One Big Beautiful Bill\" (OBB).Synopsis:In this episode of Wealthyist, Dr. Brian Jacobsen and Brian Lamborne dive into the complexities of business tax strategies, likening them to an \"alphabet soup\" of acronyms like QBI and QSBS. They discuss how these provisions impact business formation, tax planning, and eventual business sales, particularly in light of the OBB's changes. The conversation highlights the importance of strategic entity selection (e.g., C corporation, S corporation, or LLC) and how it affects eligibility for tax benefits like the QBI deduction. They also touch on common pitfalls, such as business owners making uninformed decisions based on incomplete advice from non-experts or social media. The episode emphasizes the need for tailored professional guidance to optimize tax outcomes and asset protection.Key Takeaways: QBI Deduction Overview: QBI (Qualified Business Income) allows a deduction of up to 20% on pass-through entity income (e.g., S corporations, LLCs, sole proprietorships) reported on personal tax returns. C corporations, taxed as separate entities, are ineligible for QBI unless they elect S corporation tax status via IRS filing. LLCs default to sole proprietorship (Schedule C) for single-member LLCs, automatically qualifying for QBI, but can elect S or C corporation tax status for strategic reasons. The OBB expanded QBI phase-in thresholds from $100,000–$500,000 to $150,000–$550,000, offering more room for high earners (e.g., doctors, lawyers) to benefit, though professionals face stricter rules above the threshold. Strategic planning, like using retirement plans (e.g., cash balance plans), can lower adjusted gross income to maximize QBI eligibility.QSBS and Entity Choice: Qualified Small Business Stock (QSBS) applies only to C...","thumbnail_url":"https://img.transistorcdn.com/VFxI0v6MoqF1WQMIedq1sXm8YG0xmJibQHoQelEQpbk/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9kODU2/N2FiYTYxNjM1NDA0/NTM4OWY4OWE1YTdl/NmRmMC5qcGc.webp","thumbnail_width":300,"thumbnail_height":300}