A business generate a certain amount of income that is classified as “qualified business income” (QBI) for purposes of Section 199A.

The taxpayer seeking to claim a qualified business income deduction (QBID) has taxable income as shown below. The taxpayer is married filing a joint return.

The business is a service business or a non-service business as shown below.

In each situation, the W-2 wages paid are $20,000 and the UBIA is $50,000.

REQUIRED: Complete the blanks in the table for the allowed QBID. Do it for the 2022 tax year.

Situation	QBI	Service Business?	Taxable Income	Allowed QBID
A	$100,000	Yes	$285,000
B	$100,000	No	$285,000
C	$100,000	Yes	$340,100
D	$100,000	No	$340,100
E	$200,000	Yes	$360,100
F	$200,000	No	$360,100
G	$200,000	Yes	$410,100
H	$200,000	No	$410,100
I	$300,000	Yes	$500,000
J	$300,000	No	$500,000

Answer rating: 100% (QA)

Certainly to calculate the Qualified Business Income Deduction QBID we need to consider various fact... View the full answer