ER Doc Advisor - Financial Planning & Taxes for Emergency Physicians

Ep 50: Understanding the QBI Deduction in 2026: A Guide for MedSpa Owners

If you’re a MedSpa owner, the Qualified Business Income deduction—or QBI—can be a huge opportunity, but it comes with some tricky rules you need to understand. One of the biggest factors is whether your business is considered a Specified Service Trade or Business, or SSTB, which can limit your deduction at higher income levels.

In this episode, we’ll break down how QBI works, the nuances for MedSpas, and why the way you structure your revenue streams can matter more than you might think. We’ll also walk through real examples to show how these rules play out in practice.

WHAT YOU’LL LEARN:

  • Why most MedSpas qualify as SSTBs and lose the QBI deduction at higher income levels.
  • How QBI phaseouts work for single versus married filers.
  • How $300,000 of MedSpa income can still produce a zero QBI deduction.
  • Why splitting retail and service revenue rarely passes IRS scrutiny.
  • How a true retail business can unlock non-SSTB QBI income.
  • How retirement plans and deductions can restore QBI eligibility.
  • How management companies and C-Corps can reduce taxable income exposure.
  • Why real estate income may be the cleanest QBI strategy for MedSpa owners.

Tags:

medspa, QBI deduction, qualified business income, SSTB, medspa tax planning, Section 199A, retail income, management company strategy, retirement planning, real estate tax strategy, medspa finances

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