Question: Farley is a CPA and operates his CPA practice as a sole proprietor. Farley is married and files a joint tax return with his spouse.

Farley is a CPA and operates his CPA practice as a sole proprietor. Farley is married and files a joint tax return with his spouse. In 2023, Farley's CPA practice produced net income for tax purposes of $320,000. Farley and his spouse's taxable income is 340,000, including a net long-term capital gain of 35,000. (Ignore the self-employment tax deduction for purposes of this problem.) Show your work. 1. What is Farley's QBI for purposes of calculating the QBI deduction? (20 point) 2. What is Farley's overall limitation? (40 points) 3. What is Farley's QBI deduction? (40 points)

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