Alice, who is single, owns 100% of the stock in an S corporation, which manufactures parts for autos and trucks. The fol

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answerhappygod
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Alice, who is single, owns 100% of the stock in an S corporation, which manufactures parts for autos and trucks. The fol

Post by answerhappygod »

Alice, who is single, owns 100% of the stock in an S
corporation, which manufactures parts for autos and trucks. The
following information concerns the S corp for the year 2021:
Ordinary business income (i.e., QBI): $6,000,000
W-2 wages paid: 2,000,000
Total unadjusted basis of fixed assets held by the corporation:
5,000,000
Assuming Alice's taxable income before the QBI deduction is
$6,500,000 (this is also her modified taxable income), calculate
her qualified business income (QBI) deduction for 2021.
SHOW COMPUTATIONS PLEASE
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