Income - Business Income Deduction FAQs

If the Pass-through entity files a 4708 composite return versus an 1140 withholding return, can the individual still take advantage of the Small Business Investor Income deduction?

The entities choice of filing does not impact the individual's ability to take the Small Business Investor Income deduction. However, please note that the deduction may only be claimed by an individual on an IT-1040 and may not be claimed on the IT-4708 or IT-1140. As indicated in FAQ #5, an entity may not claim the deduction.