Question

Calculator Danielle is a partner in and sales manager for DG Partners, a domestic business that is not a specified service trade or business. During the tax year, she receives guaranteed payments of $250,000 from DG Partners for her services to the partnership as its sales manager. In addition, her distributive share of DG Partners' ordinary income (its only item of income or loss) was $175,000. What is Danielle's qualified business income

Answer 1

Danielle's qualified business income is $ 175,000

Step-by-step explanation:

Danielle's qualified business income is $ 175,000.

Danielle's qualified business income from DG is $ 175,000 and Guaranteed payments do not qualify as QBI.

Hence the distributive share can be said to be the relevant part.