Date of Posting : June 30, 2020
The SSTB limitation mentioned in the question-above is not applicable when the income is less than $315,000 for a couple filing taxes jointly, or $157,500 for all other taxpayers; this deduction is lesser than:
If the taxable income of the taxpayer is more than $315,000 or $157,500, the deduction will be limited depending on the type of business for an SSTB, the W-2 wages paid by the company, and the UBIA basis of some properties used by the industry. These limitations are applicable for taxable income between $315,000 and $415,000 in case of joint filing, and all other taxpayers with taxable income between $157,500 and $207,500. The threshold amounts and phase-in range are for tax-year 2018 and will be increased or decreased as per inflation in the coming years.