Homework Answers
Answer:
True
Qualified Business Income (QBI) is mainly subject to 3 limitations-
1. An overall limitation that is based on modified taxable income- that is according to Sec 199A deduction must not exceed 20% of Modified taxable income.
2. Second that applies to
high-income taxpayers.
3. Last one that applies to certain types of service
businesses.
Note-
The second and the third limitations apply only when the taxable
income before deducting QBI, exceeds $315,000 for Married Filing
jointly or $157,500 for all others.
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