Sam and Betty, each single, each generate sole proprietor income of $270,000 for 2020. Sams income is generated from a wholesale business while Bettys is earned from her law practice. Both businesses have employees and qualified assets. Both individuals have other income, but not from a business, and each has taxable income before the QBI deduction of $220,000.

a. Both Sam and Betty will each have a QBI deduction of $44,000.

b. Sam can claim a QBI deduction, but not Betty.

c. Neither Sam nor Betty can claim a QBI deduction because of their taxable income levels.

d. Betty can claim a QBI deduction, but not Sam.

e. Both Sam and Betty will have a QBI deduction, but their deductions are limited to an amount determined by the W-2 wages and qualified property of their businesses.