Question
Yakko, who is married and files a joint return, is a shareholder in Animaniacs, Inc., a care dealership that is an S-corporation. Yakko's 2020 share
Yakko, who is married and files a joint return, is a shareholder in Animaniacs, Inc., a care dealership that is an S-corporation. Yakko's 2020 share of the net business income from this S-Corporation is $300,000.
Yakko's share of wages paid by the dealership to its employees totaled $90,000 and his share of the unadjusted basis of qualified property is $150,000.
Yakko's 2020 taxable income before the deduction for qualified business income is $500,000, including $250,000 of Long-term capital gains and $100,000 qualified dividends. He has no other qualified business income.
What is Yakko's 2020 QBI deduction?
a.
$26,250
b.
None of these
c.
$45,000
d.
$30,000
e.
$60,000
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