Corrected: Frank and Lillie are married and file jointly. Frank earns $375,000 (net after all expenses including salary below, but not including their standard education) from his single member LLC - a company that specializes in providing investment planning services for some of his associates, like Billy Wolfgang, Fester Addams, and Sal Mummy. He reported his business as a sole proprietorship. Wages paid by the investment firm amount to $60,000; the investment firm has a total unadjusted basis of property of $120,000. Lillie is employed as an administrative assistant of a local health service company, and earns a salary of $55,000. They have a qualified dividend income of $5,000, net LTCG of $2,000, and investment interest of $1,000. As an accountant, they ask you to determine their taxable income, and their Qualified Business Income (QBI) and QBI deduction for 2022. Show all formulas, calculations, and work that will flow through the 4 items below.

Taxable Income

Modified Taxable Income

QBI

QBI Deduction