What is Dot QBI deduction

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Question - Dot is single and is a shareholder in Water Tower, Inc., an S-Corporation. Water Tower is Dot's law practice. Dot's 2020 share of net business income from Water Tower is $275,000.

Dot's share of wages paid by Water Tower to its employees is $80,000 and her share of unadjusted basis of qualified property is $1,000,000.

Dot's taxable income before the deduction for qualified business income is $350,000,including $75,000 of dividend income from a REIT. What is Dot's QBI deduction?

a. $15,000

b. $45,000

c. $60,000

d. $70,000

e. None of these

Reference no: EM132612821

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