S Corp: QBI

Question 1

What is the QBI deduction (before any limitations)

Answer 1

20% X ordinary business income

Question 2

What is the wage/property limitation for QBI?

Answer 2

QBI is reduced by the greater of:

50% of wages

Or

25% wages + 2.5% unadjusted basis of qualified property

Question 3

What are the income thresholds for QBI?

Answer 3

Lower income: <315k, no limitations applied to QBI

Middle income: >315k <415k, QBI is limited by the proportion of taxable income which exceeds 315k (in proportion to 100k)