What is L QBI deduction for income from LKA

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Reference no: EM132910615

Problem 1: L is a 1/3 shareholder in LKA, PC, an S corporation law firm. In the current year, L's share of the income from LKA is $300,000. Her taxable income before the QBI deduction is $500,000. Her share of LKA's W-2 wages is $80,000. L is married and files a joint return with her husband. What is L's QBI deduction for her income from LKA?

a. $0
b. $40,000
c. $60,000
d. $100,000

Reference no: EM132910615

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