Answered

All of the following items are considered when calculating the amount of qualified business income (QBI) reported to beneficiaries, shareholders, and partners directly on their Schedules K-1 EXCEPT:


  1. Ordinary business income or loss
  2. Rental income received in the ordinary course of a trade or business
  3. Section 179 deduction
  4. Wage income

Verified Answer :

mohammadasabri

Answer:

Wage income

Explanation:

The item that is NOT considered when calculating the amount of qualified business income (QBI) reported to beneficiaries, shareholders, and partners directly on their Schedules K-1 is:

4. Wage income

Wage income is considered earned income and does not qualify as part of QBI, which generally includes income from a qualified trade or business under Section 199A of the Internal Revenue Code.

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