FLOWCHART FOR CALCULATING PASS - THROUGH DEDUCTIONS
UNDER THE TAX CUTS AND JOBS ACT
START HERE

YES

IS YOUR TAXABLE INCOME
BELOW THE
THRESHOLD?

NO

DEDUCTION = .2("QBI")

DEDUCTION = [THE NEW WCF] + [(THE
APPLICABLE
PERCENTAGE)X(THE NEW QBIF-WCF
DIFFERENCE)]

NO

IS YOUR BUSINESS A
SPECIFIED SERVICE
BUSINESS?

YES

IS (.2)QBI LOWER
THAN THE WAGE
CAPITAL FACTOR?

YES

DEDUCTION =
(.2(QBI)X
(APPLICABLE PERCENTAGE)

NO
DEDUCTION
= .2("QBI")

YES

IS (.2)QBI LOWER
THAN THE WAGE
CAPITAL FACTOR?

NO

© 2018 ROB AND JOE HASSETT,
ALL RIGHTS RESERVED
VERSION 1-11-2018

DEDUCTION = WAGE-CAPITAL
FACTOR + [("QBI-WCF
DIFFERENCE")X("APPLICABLE
PERCENTAGE")]