A taxpayer who is not engaged in an SSTB, who typically has taxable income that exceeds $500,000, asks if she will be phased out of the QBI deduction. What will you tell her?

Since her taxable income is over the thresholds, she will not be eligible for any QBI deduction.

If her business has wages and qualifying property, she will qualify for a QBI deduction.

As long as she has qualifying income, she will receive a 20% QBI deduction.

As long as her qualifying business income is not more than 20% of her taxable income, she will receive a QBI deduction.