Question
A business generate a certain amount of income that is classified as qualified business income (QBI) for purposes of Section 199A. The taxpayer seeking to
A business generate a certain amount of income that is classified as qualified business income (QBI) for purposes of Section 199A.
The taxpayer seeking to claim a qualified business income deduction (QBID) has taxable income as shown below. The taxpayer is married filing a joint return.
The business is a service business or a non-service business as shown below.
In each situation, the W-2 wages paid are $20,000 and the UBIA is $50,000.
REQUIRED: Complete the blanks in the table for the allowed QBID. Do it for the 2022 tax year.
| Situation | QBI | Service Business? | Taxable Income | Allowed QBID |
| A | $100,000 | Yes | $285,000 |
|
| B | $100,000 | No | $285,000 |
|
| C | $100,000 | Yes | $340,100 |
|
| D | $100,000 | No | $340,100 |
|
| E | $200,000 | Yes | $360,100 |
|
| F | $200,000 | No | $360,100 |
|
| G | $200,000 | Yes | $410,100 |
|
| H | $200,000 | No | $410,100 |
|
| I | $300,000 | Yes | $500,000 |
|
| J | $300,000 | No | $500,000 |
|
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