R1 QBI

Question 1

QBI deduction

Answer 1

20%*Qualified business income

Question 2

SSTB

Answer 2

Includes flow-through entities dealing with
health
law
accounting
actuarial science
performing arts
consulting
athletics
financing services

Question 3

QBI

Answer 3

Contains everything not in SSTB

Question 4

Category 1

Answer 4

Less than
Single 191,950
Married Filing joint 383,900

Both QBT and SSTB are treated the same

Question 5

Category 1 calculation

Answer 5

Step 1 (Calculate tentativeQBI deduction)
BQI*20%

Step 2 Calculate overall limitation)
(Taxable income-Net capital gains) *20%

Step 3
Choose the lesser of Step 1 and Step 2

Question 6

Category 2

Answer 6

Less than
Single 241,950
Married Filing joint 483,900

Both QBT is calculated with the 5-step rule and SSTB is disregarded.

Question 7

category 2 calculation

Answer 7

Step 1 (Calculate tentativeQBI deduction)
BQI*20%

Step 2 (Calculate the full w-2 wages and property limitations
Greater of
A. W-2 wages * 50%
B. (W-2 wages * 25%) + (UBI * 2.5%)

Step 3
Take the lessor of Step 1 and Step 2

Step 4 Calculate overall limitation)
(Taxable income-Net capital gains) *20%

Step 5
Choose the lessor of Step 3 and Step 4