Question

Mark owns an S Corp running a healthcare service business, as a health spa in Florida during 2018. Mark's spa earns $500,000 a year in income after all deductions on his K1. Mark is married files jointly with three children and uses the standard deduction. Mark's S Corp paid out a total of $100,000 in W2 wages during the year and the property owned by the business (in the same S Corp) was purchased at $1,000,000 five years ago. How much is Mark's QBI deduction

Answer 1

Answer:

$0

Explanation:

Healtcare business is specified business and their joint taxable income is more than $315,000 therefore they are exempted from QBI deduction.

hence the QBI deduction should be $0.

The qualified business income deduction (QBI) allows eligible self-employed and small-business owners to deduct up to 20% of their qualified business income on their taxes.