Adam, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Adam had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Adam pays $40,000 in wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $300,000

a. Do Legal services fall within the definition of specific service or trade businesses, which are excluded from deemed not to be qualified trade or businesses for purposes of the deduction for qualified business income?

b. Does Adams taxable income fall above the taxable income limits that exclude specified services making them ineligible for the QBI income?

c. Is Adam eligible for the QBI deduction?

3. Assume the same facts provided above, except Adams taxable income before the QBI deduction is $195,050.

a. What percentage of Adams qualified income is excluded from the QBI deduction?

b. If Adams business was a lawn service instead of legal services, what percentage of Adams income would be excluded from the QBI deduction?

c. If Adam was married filing jointly and his taxable income was $365,050 what percentage of Adams qualified income is excluded from the QBI deduction?