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Patricia is a 25% owner and an active member in the PBK LLC, which operates a qualified trade or business for purposes of the deduction
Patricia is a 25% owner and an active member in the PBK LLC, which operates a "qualified trade or business" for purposes of the deduction under 199A. Patricia's distributive share of "qualified income" from the LLC is $250,000 for the year (the LLC's income is $1,000,000. Her share of the LLC's W-2 wages is $40,000, plus she received a guaranteed payment for services of $30,000. Her share of the LLC's "unadjusted basis immediately after acquisition of qualified property" is $1,200,000. How much is her qualified business income for this separate trade or business? a. $20,000 b. $40,000 C. $50,000. d. $47,50o. e. $35,000
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