Question
Elliot operates his clothing store as a single member LLC (which he reports as a sole proprietorship). In 2021, his proprietorship generates qualified business
Elliot operates his clothing store as a single member LLC (which he reports as a sole proprietorship). In 2021, his proprietorship generates qualified business income of $280,000, he pays W-2 wages of $170,000, and he has qualified business property of $140,000. Elliot's wife, Julie, is an attorney who works for a local law firm and receives wages of $90,000. They have no other items of income, deduction, or loss, will file jointly, and use the standard deduction ($25,100). Assume the QBI amount is net of the self-employment tax deduction. What is Elliot's qualified business income deduction? x
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