Greg is a single taxpayer with taxable income of $218,000. Although he is not involved in a specified service trade or business, he has qualified business income. How will Greg compute his business income deduction?

He will multiply the amount of his qualified business income by 20%.

He will multiply the amount of his taxable income by 20%.

His computation will involve several steps because his deduction may be limited by the amount of Form W-2 wages paid and the UBIA of property held by the trade or business.

None of these choices apply because Greg is not entitled to the deduction.