Donna and Mark Are Married and File a Joint Return

question 61

Multiple Choice

Donna and Mark are married and file a joint return reporting taxable income of $350,000. Donna owns a qualified S corporation that is not a specified service business. During the year, she incurs qualified business income of
$75,000. Donna's share of wages paid by the business is $20,000. Assuming there is no qualified property factor, calculate her 20% QBI deduction.

• A) $-0-.
• B) $9,750.
• C) $15,000.
• D) $20,000.

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Definitions:

Primary Quality

Fundamental or inherent characteristics that determine the value or usefulness of something.

Model of Business Reporting

A framework or standard outlining the principles and requirements for presenting financial and non-financial information about a company's performance and position.

Financial Data

Information about financial transactions, assets, liabilities, revenues, and expenses of a business or individual.

Recognition Principles

The criteria and rules that govern when and how revenue and expenses are recognized in the accounting period they occur.