Taylor, a single taxpayer, has taxable income for 2020 before the QBI deduction of $183,300. Taylor, a CPA, operates an accounting practice as a single member LLC (which he reports as a sole proprietorship). During 2020, his proprietorship reports qualified business income of $150,000 and W-2 wages of $125,000 and qualified property with an adjusted basis of $10,000.

What is Taylors qualified business income deduction?

a. $-0-.

b. $12,000.

c. $18,000.

d. $30,000.

e. The deduction cannot be determined because the basis of the qualified property before adjustments is needed, not its adjusted basis.