Richey May’s Inside the One Big Beautiful Bill Act video series is designed to help mortgage lenders and other industry-affiliated businesses understand what this sweeping legislation means in practice, not just in theory. Hosted by Kenny Burch, Director, Mortgage Banking Tax, the series features focused conversations with experts from Richey May’s Mortgage Banking Tax team, each examining a specific provision of the Act and its implications.
The first episode in the series focuses on the Qualified Business Income (QBI) deduction under Section 199A, a provision that has played a significant role in pass-through tax planning since its introduction under the Tax Cuts and Jobs Act. Kenny is joined by Dawnna Houston, Senior Tax Manager, to explain how §199A works, what was at risk under prior law, and how the One Big Beautiful Bill Act reshapes the long-term outlook for the deduction.
Key Takeaways from the Episode
- The QBI deduction is now permanent: The One Big Beautiful Bill Act removes the post-2025 expiration, allowing mortgage lenders and owners to plan around §199A with greater long-term certainty.
- Income thresholds have been raised: More taxpayers may qualify for the full 20% deduction before limitations begin to apply, changing who should be actively modeling the impact.
- Phase-in ranges have been expanded: The widened phase-in reduces the severity of deduction limitations as income increases, offering added planning flexibility.
- A minimum deduction has been introduced: Taxpayers with qualifying business income may now benefit from a baseline §199A deduction, even when overall eligibility is constrained.
- Wage and property factors still matter: For higher-income taxpayers, W-2 wages and qualified property remain critical drivers of the final deduction amount.
These changes make §199A more predictable—but not less complex—underscoring the importance of understanding how the rules apply to your specific tax profile.
Watch the full episode below to hear Kenny and Dawnna walk through the mechanics of the Qualified Business Income deduction, including detailed examples and what the One Big Beautiful Bill Act means for mortgage banking taxpayers.
Continue the Conversation
This episode kicks off the Inside the One Big Beautiful Bill Act series, which explores additional provisions shaping the mortgage banking tax landscape. Visit the series page to watch upcoming episodes and stay current as new guidance continues to emerge.
If you have questions about how §199A or any aspect of the One Big Beautiful Bill Act may impact your organization, the Richey May Mortgage Banking Tax team is available to help.
