Question

Jack and Mary, a married couple, report taxable income of $280,000, which includes $200,000 from Jack's solely owned S corporation. The S corporation paid wages of $100,000 to employees (which does not include his salary). No acquisitions of depreciable property were made during the year.

Calculate the couple's QBI deduction.

Answer 1

Answer:

$32,140

Explanation:

The QBI  on $280,000(57.3% of Taxable income)                  $160,700

Eligible Deduction of 20% on QBI                                            $32,140