Janice earned $175,000 of qualified business income this year from her sole proprietorship and has taxable income,before any QBI deduction,of $150,000.Janice is permitted a QBI deduction of

Question

Quizplus · Accepted Answer

The QBI deduction is generally 20% of the qualified business income. Therefore, 20% of $150,000 (the lesser of her QBI or taxable income) is $30,000.

Janice Earned $175,000 of Qualified Business Income This Year from Her