Donna and Mark are married and file a joint return reporting taxable income of $350,000. Donna owns a qualified S corporation that is not a specified service business. During the year, she incurs qualified business income of
$75,000. Donna's share of wages paid by the business is $20,000. Assuming there is no qualified property factor, calculate her 20% QBI deduction.
A) $-0-.
B) $9,750.
C) $15,000.
D) $20,000.

Question

Quizplus · Accepted Answer

Donna's 20% QBI deduction is calculated as follows:QBI deduction = 20% x (QBI - 1/2 x W-2 wages)QBI deduction = 20% x ($75,000 - 1/2 x $20,000)QBI deduction = 20% x $60,000QBI deduction = $12,000

Donna and Mark Are Married and File a Joint Return