Qualified business income. Ermina is a pediatrician who is building a practice in the Los Angeles area. This is a specified service trade or business. In 2020, she earned a net profit of $250,000 from the business (i.e., profit after paying employee wages and other expenses). She is married and files jointly with her husband, who earned a $54,800 salary. They had no other income. They take the standard deduction ($24,800). She had one employee who she paid $80,000 in wages. She owned depreciable equipment she had bought 2 years earlier for $100,000 and no other property. How much is her qualified business income (QBI) deduction?

zero

A. $56,000 [$280,000 joint taxable income x 20%]

B. $50,000 [$250,000 QBI x 20%]

C. $22,500 [$80,000 wages x 25% + $100,000 property x 2.5%]

D. $40,000 [$80,000 wages x 50%]