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Income Tax Planning
Chapter 7: Itemized Deductions/THE QBI DEDUCTION: EXAMPLE 2
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 7: Itemized Deductions

THE QBI DEDUCTION: EXAMPLE 2

01.Core Concepts

• Kaylan’s share of qualified business income from a partnership is $90,000, and her total adjusted taxable income from all sources (after taking above- the-line deductions and either the standard or itemized deduction, but before taking the 20% deduction for QBI) is $110,000, the deduction is the lesser of: • 20% x $90,000, or • 20% x 110,000 • Deduction limited to $18,000.