diana is a 10% owner in an advertising agency named bright ideas. bi is a subchapter s corporation. the company reported ordinary business income for the year of 150000. diana received a k-1 from bi reporting her allocation of this business income. diana acquired the stock several years ago. her basis in the stock before considering her 2021 income allocation was 92000. diana is a passive owner with respect to this entity, and all her investment is at risk. diana received no distribution from bi in 2021. bi is a specified service business for purposes of the qualifies business income deduction, generating 150000 of qualified business income and paying 50000 in w-2 wages to its non shareholder employees
