Calculation of qualified business income deduction (LO. 6) Dan and Katlyn are married and operate a pizza restaurant as an S corporation. They are not eligible for any additional standard deduction amounts. In 2020, the store has qualified business income of $300,000. Their itemized deductions are $22,000 and they have other income from interest and dividends of $9,000. Hint: No self-employment tax on profits of an S Corporation. a. What is their QBI deduction for 2020? $ What is their taxable income? b. Assume the same facts as above, except that Dan and Katlyn are lawyers and jointly operate their law firm as a partnership. The income that flows to them from the partnership is $385,000. In addition, they have capital gains of $5,000. Note: If required, round any division due to phaseout to 2 decimal places. For example, if answer is 0.4620, round to 0.46 or 46%. What is their QBI deduction for 2020? What is taxable income? $ C. Assume the facts of the original problem except that their itemized deductions are $32,000, the QBI from the business is $510,000, it has W-2 wages of $160,000, and unadjusted depreciable property of $180,000. What is their QBI deduction for 2020? What is taxable income? Exhibit 6-1 2020 QBI Deduction (QBID) Taxable income before QBID $326,600 but $426,600 (Married), [$213,300 (Single)] Specified Service Business No QBI Deduction (Completely phased-out) Other Businesses Lesser of: (1) 20% of QBI or (2) 20% of taxable income (less any capital gains) before QBID (3) Greater of (a) 50% of W-2 wages or (b) sum of 25% of W-2 wages plus 2.5% of original cost of depreciable property