Reply To: QBI deduction calculations

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#2203
kaneohe
Participant

“For purposes of section 199A only, deductions such as the deductible portion of the tax on self-employment income under section 164(f), the self-employed health insurance deduction under section 162(l), and the deduction for contributions to qualified retirement plans under section 404 are considered attributable to a trade or business to the extent that the individual’s gross income from the trade or business is taken into account in calculating the allowable deduction, on a proportionate basis to the gross income received from the trade or business.

Having trouble understanding the last (bolded) part means……….isn’t the the individual’s gross income from the trade or business 100% of the gross income received from the trade of business………the proportionate is the confusing term.

If a person has SE income and Medicare, can the cost for Medicare be considered as SE health insurance? and any Medigap policies?