§199A QBI Aggregation Calculator
Section 199A aggregation lets you combine multiple trades or businesses into a single calculation for the QBI deduction. Useful when one business has high QBI but no wages/UBIA, and another has wages/UBIA but lower QBI. Aggregation must meet 50% common ownership test and similar-business test.
When Aggregation Helps
Two businesses owned by same person: Business A has high QBI but no employees (consulting). Business B has lower QBI but significant wages + UBIA (manufacturing). Standalone, A might lose deduction to wage/UBIA limit; B has surplus. Aggregating shares the wage/UBIA cushion across both — usually increases total deduction at high incomes. Below threshold ($242K/$484K MFJ), aggregation is irrelevant since wage/UBIA limit doesn't apply.
Aggregation Requirements
All these must be met: (1) Common ownership — same person/entity owns 50%+ of both businesses. (2) Same tax year. (3) Similar business — same NAICS code, or share centralized administrative/operational functions. (4) None of the businesses are Specified Service Trades or Businesses (SSTB — health, law, accounting, consulting). Once you elect aggregation, you must continue in subsequent years unless facts materially change.
How To Make the Election
File aggregation statement with Form 8995-A. Each business reports separately on Form 8995-A Schedule A, then aggregated on main form. Statement must include: business descriptions, why aggregation criteria met, IDs/EINs. Cannot retroactively aggregate — must elect in first year you want benefit. Reverse-engineering by amending is generally not permitted.
Source: IRC §199A regulations (26 CFR §1.199A-4), 2026 IRS inflation adjustments, Form 8995-A instructions. Last updated: May 2026.