Form 8995 - Qualified Business Income Deduction Simplified Computation

Form 8995 is used to calculate the qualified business income deduction for taxpayers with qualified business income, qualified REIT dividends, or qualified PTP income. Taxpayers who have any of these types of income need to fill in Form 8995 to determine their qualified business income deduction.

Purpose of Form

Form 8995 for the purpose of calculating your qualified business income (QBI) deduction. Certain individual taxpayers, as well as some trusts and estates, may qualify for a deduction of up to 20% of their net QBI derived from a trade or business, which includes income from a pass-through entity but excludes income from a C corporation. Additionally, you may be eligible for a deduction of 20% of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. It is important to note that the total QBI deduction cannot exceed 20% of your taxable income, computed prior to the QBI deduction, minus net capital gain (adjusted for any qualified dividends).