Question

Which of the following items is not considered when computing qualified business income (QBI) for the...

Which of the following items is not considered when computing qualified business income (QBI) for the QBI deduction?

a. Wages paid to employees

b. Ordinary business income or loss

c. Rental income or loss

d. Section 179 deduction

Business   Accounting   
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Answer #1

Solution:

Wage paid to employees,

It is defined as the total amount of qualified items of income, gain, deductions and loss with respect to any business. Qualified business income excludes: Capital gains or losses, and wage income.

Rest of the options are correct supposed to the QBI. Rental income and business income is not a capital gain . Section179 deduction is not there in QBI. Wage paid to employess wil not consider sepeartely, It is an expense for the business. Only income or loss will take into consideration.

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