2. The taxpayer's wage expense for the year is $150,000 so the QBIi is maxed is out at $150,000

3. if the taxpayer changes to a c corp, he or she will not be entitled to any qbi deduction.

The taxpayer is a self-employed contractor who builds residences and had gross income of $2.2 million. The net income attributed to the business was $450,000. Additionally, this taxpayer has a team of 10 full-time employees, as well as contractors who perform the design and build projects. The business has $150,000 of wages for the tax year, and the taxpayer is organized as a single-member LLC and has filed as Married Jointly. Is the following statement regarding Qualified Business Income (QBI) relevant to this situation? Wages may be a limiting factor when computing QBI