QBI Wages and Property Limit 2027 Calculator
Estimate the W-2 wages and Unadjusted Basis Immediately After Acquisition (UBIA) limit on your QBI deduction for non-SSTB businesses.
When Does the W-2/UBIA Limit Apply?
For 2027, the W-2 wages and UBIA property limit applies to NON-SSTB pass-through owners whose taxable income exceeds approximately $241,950 single / $483,900 MFJ. Below those thresholds, you get the full 20% deduction with no wage or property test. SSTB owners hit a different (phaseout) test, not this one. Source: IRC §199A(b)(2). Last updated: May 2026.
The Two-Part Test
Your QBI deduction is capped at the GREATER of: (a) 50% of W-2 wages paid by the qualified trade or business, OR (b) 25% of W-2 wages PLUS 2.5% of UBIA of qualified property. The second test favors capital-intensive businesses (real estate, manufacturing) with low payroll relative to assets.
What Counts as UBIA?
Unadjusted Basis Immediately After Acquisition (UBIA) = the original cost basis of tangible depreciable property still in its recovery period. Land does NOT count (not depreciable). Property held for the longer of 10 years or its MACRS recovery period qualifies. Real estate owners benefit most because of high UBIA.
Strategy: Maximize the Limit
(1) Increase W-2 wages — convert independent contractors to employees if defensible. (2) For real estate: cost segregation studies allocate more basis to qualifying personal property (5/7/15-year). (3) Buy new equipment in high-income years to boost UBIA. (4) Aggregate businesses under §199A to pool wages/property where rules allow.