Yes, some businesses structured as Limited Liability Companies (LLCs) may be eligible for a 20% deduction under the Qualified Business Income Deduction (QBI) provision of the Tax Cuts and Jobs Act (TCJA). This deduction, also known as the Section 199A deduction, allows eligible businesses to deduct up to 20% of their qualified business income before calculating their income tax.

Here are some key points to consider:

• Eligibility: The 20% deduction is generally available to certain pass-through entities, including sole proprietorships, partnerships, S corporations, and some LLCs. It allows business owners to reduce their taxable income by 20% of their qualified business income.
• Thresholds: The deduction has limitations based on taxable income thresholds. Depending on your filing status, if your taxable income is above a certain threshold, you may face restrictions on the deduction. This means that high-income taxpayers may not receive the full 20% deduction.
• Specified Service Businesses: There are also specific rules for “specified service trades or businesses” (SSTBs), such as those in the fields of health, law, accounting, and consulting. SSTBs are subject to different rules and income limitations. Once taxable income exceeds certain thresholds, the deduction for SSTBs may be reduced or eliminated.
• Wage and Asset Limits: For businesses beyond the thresholds, the deduction may also be limited based on the greater of two calculations: 50% of W-2 wages paid by the business or 25% of W-2 wages plus 2.5% of the unadjusted basis of qualified property.
• Qualified Business Income: The deduction is based on the business’s “qualified business income,” which generally includes net income from the business minus certain deductions.

Tax laws and regulations can change, and it’s essential to consult with a qualified tax professional or accountant who is up-to-date with the most current tax laws and regulations. Also, the specifics of your situation, including your business’s industry, structure, and income, will affect your eligibility for and the amount of the Section 199A deduction.