Ben and Molly are married and will file jointly. Molly generates $$300,000$ of qualified business income from her single member LLC $($a law firm$).$ She reports her business as a sole proprietorship. Wages paid by the law firm amount to $$40,000$; the law firm has no significant property. Ben is employed as a tax manager by a local CPA firm. Their modified taxable income is $$400,100($this is also their taxable income before the deduction for qualified business income$).$

What is their tentative QBI hased on the W$-$T Wanes$/$Canital Investment Limit?

Determine their allowable QBI deduction for $2022.$

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There are three limitations on the QBI deduction: an overall limitation $($based on modified taxable income$),$ another that applies to highincome taxpayers, and a third that applies to certain types of services businesses. The second and third limitations only apply when taxable income before the QBI deduction exceeds $$340,100($married taxpayers filing a joint return$)$ or $$170,050($single and head$-$of$-$household taxpayers$).$ Once these thresholds are reached, $199$A imposes two independent limitations$.$