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QBI for LLC ...does it include k-1 plus w-2 wages for 20% calculation. If a member receives a paycheck W-2 and K-1 passthrough they should be considered same income?

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11 Replies 11
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got an answer of no...no what...why would a member pay a salary as standard procedure for years and then stop w-2 to increase pass through income.  Initial procedures stated it was both...proc on 1/22/19 says a different thing
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Level 15
Because they are required to take out a reasonable salary.  No is the correct answer.
ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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Level 10
It was never both:

https://www.law.cornell.edu/uscode/text/26/199A#c_4_A

Qualified business income shall not include—
(A) reasonable compensation paid to the taxpayer by any qualified trade or business of the taxpayer for services rendered with respect to the trade or business
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Level 15
Why is an LLC member getting a W-2?

ex-AllStar
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Level 15
LLC elected to be taxed as Corporation?     When someone just says LLC...there too many options to know exactly what type of entity they are referring to.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 15
True

ex-AllStar
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Level 10
I think when Jeff and I replied it was an S Corp.
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Level 15
Yes, S corp when the question first started.
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Still an AllStar
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Level 15
Level 15
oh, this must have carried over from some other thread, or something was edited..

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 10
Oh good, for a second there I thought maybe I was going crazy.
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Level 15
Sometimes answering a question here is like hitting a moving target :gun::gun:
ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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