Jay, a Single Taxpayer, Operated a Hardware Store as a Sole

question 56

Multiple Choice

Jay, a single taxpayer, operated a hardware store as a sole proprietorship during 2018. He has the following information:
?
$$\begin{array} { l r } \text { Net Sales from the hardware store } & \$ 300,000 \\\text { Operating Expenses of the hardware store } & 200,000 \\\text { Dividend Income } & 5,000 \\\text { Taxable income before the Qualified Business Income (QBI) deduction } & 90,000\end{array}$$
What is Jay's Qualified Business Income (QBI) deduction?

• A)$- 0 -
• B)$18,000
• C)$20,000
• D)$21,000
• E)$60,000