What is yakko qbi deduction

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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 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

Reference no: EM132612825

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