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90% confirm.

If your company earned $100k, and paid you $50k, you can deduct 20% of the 100k capped at 20% of your ordinary income ($50k), for a total deduction of $10k.

but not if you are a software consulting apparently: https://news.ycombinator.com/item?id=15973178

and your taxable income exceeds $315,000 for married individuals filing jointly or $157,500 for individuals. The 20% deduction starts phasing out at those levels.

Yes, it is a deduction of 20%.

Capped at 20% of your ordinary income.