Question

In 2018, Tracy generates a $10,000 loss from an otherwise qualified business activity. Fortunately, she also works as an employee and has taxable income of $40,000. Tracy's 2018 QBI deduction is

Answer 1

$0

Step-by-step explanation:

Data provided in the question

Generate loss from an otherwise qualified business activity is $10,000

And, the taxable income is $40,000

Since as we can see that there is a loss in qualified business activity so the QBI deduction is zero as it is calculated only on case of profit

And, the taxable income represents the fixed income not the business income so it would not be considered