Pat's taxable income exceeds $157,500 and thus he is required to phase out his QBI deduction.The phase-out calculation is:
A)The greater of 50% of business wages or 25% of wages plus 2.5% of the unadjusted basis of qualifying property
B)The lesser of 50% of business wages or 25% of wages plus 2.5% of the unadjusted basis of qualifying property
C)50% of taxable income without the QBI deduction
D)50% of the amount over $157,500

Question

Quizplus · Accepted Answer

The phase-out calculation for the QBI deduction is based on the greater of 50% of business wages or 25% of wages plus 2.5% of the unadjusted basis of qualifying property.

Pat's Taxable Income Exceeds $157,500 and Thus He Is Required