Qualified business income includes the reasonable compensation paid to the taxpayer by a qualified trade or business and guaranteed payments made to a partner for services rendered.

Question

Quizplus · Accepted Answer

Qualified business income (QBI) does not include reasonable compensation paid to the taxpayer by an S corporation, nor does it include guaranteed payments made to a partner for services rendered to the partnership. These amounts are considered compensation for services and are not included in the calculation of QBI.

Qualified Business Income Includes the Reasonable Compensation Paid to the Taxpayer