Melissa, a single taxpayer, has qualified business income of $150,000. Her business paid Form W-2 wages and holds qualified property. As Melissa's Tax Professional, you determine that her qualified business income deduction will be limited because her taxable income exceeds the lower threshold for her filing status. You will begin figuring the amount of her deduction by multiplying $150,000, the amount of her qualified business income, by 20%. Your next step is to:

Deduct the lowest threshold, $157,500, from her taxable income.

Determine the greater of 50% of Form W-2 wages paid OR the sum of 25% of Form W-2 wages, plus 2.5% of the UBIA of qualified property held by her business.

Determine the lesser of her qualified business income and 50% of Form W-2 wages paid.

Determine the lesser of her qualified business income and 2.5% of the unadjusted basis of qualified property.