Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2020, the plumbing business has gross business income of $421,000 and business expenses of $267,000, including wages paid of $58,000. The business sold some land that had been held for investment generating a long-term capital gain of $15,000. The business has $300,000 of qualified business property in 2020. Rob’s wife, Marie, has wage income of $250,000. They jointly sold stocks in 2020 and generated a long-term capital gain of $13,000. Rob and Marie have no dependents and in 2020, they take the standard deduction of $24,800.
a. What is Rob and Marie’s taxable income before the QBI deduction?
b. What is Rob and Marie’s QBI?
c. What is Rob and Marie’s QBI deduction?
d. Complete Form 8995-A on Pages 4-61 and 4-62 to report Rob’s QBI deduction.

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Form 8995-A Department of the Treasury Internal Revenue Service Name(s) shown on return A Part I Trade, Business, or Aggregation Information Complete Schedules A, B, and/or C (Form 8995-A), as applicable, before starting Part I. Attach additional worksheets when needed. See instructions. 1 B 2 3 Part II Determine Your Adjusted Qualified Business Income 4 567 8 9 10 11 12 13 Qualified Business Income Deduction ►Attach to your tax return. Go to www.irs.gov/Form8995A for instructions and the latest information. 14 (a) Trade, business, or aggregation name 15 16 (b) Check if specified service Qualified business income from the trade, business, or aggregation. See instructions. Multiply line 2 by 20% (0.20). If your taxable income is $160,700 or less ($160,725 if married filing separately; $321,400 if married filing jointly), skip lines 4 through 12 and enter the amount from line 3 on line 13.. Allocable share of W-2 wages from the trade, business, or aggregation. Multiply line 4 by 50% (0.50) Multiply line 4 by 25% (0.25) Allocable share of the unadjusted basis immediately after acquisition (UBIA) of all qualified property Multiply line 7 by 2.5% (0.025). Add lines 6 and 8 . . . Enter the greater of line 5 or line 9. W-2 wage and qualified property limitation. Enter the smaller of line 3 or line 10. Phased-in reduction. Enter the amount from line 26, if any. See instructions. Qualified business income deduction before patron reduction. Enter the greater of line 11 or line 12.. Patron reduction. Enter the amount from Schedule D (Form 8995-A), line 6, if any. See instructions... 2 3 4 5 6 789 10 11 12 13 14 15 (c) Check if aggregation 16 OMB No. 1545-0123 2019 Attachment Sequence No. 55A Your taxpayer identification number A (d) Taxpayer identification number see note below B (e) Check if patron Qualified business income component. Subtract line 14 from line 13 Total qualified business income component. Add all amounts reported on line 15. . For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 71661B Form 8995-A (2019) *Please go to www.irs.gov to download the latest Form 8995-A. The 2020 version of Form 8995-A was not available as we went to print. If using the prior year form included in the textbook, be sure and use updated income limits on Line 3 and Line 21 ($326,600 for married filing jointly and $163,300 for all other). с