Question
Jason and Paula are married. They file a joint return for 2019 on which they report taxable income before the QBI deduction of $299,500. Jason
Jason and Paula are married. They file a joint return for 2019 on which they report taxable income before the QBI deduction of $299,500. Jason operates a sole proprietorship, and Paula is a partner in the PQRS Partnership. Both are a qualified trade or business, and neither is a specified services business. Jason's sole proprietorship reports $188,800 of qualified business income, reports W2 wages of $53,600, and owns qualified property of $16,500. Paula's partnership reports a loss for the year, and her allocable share of the loss is $35,100. The partnership reports no W2 wages, and Paula's share of the partnership's qualified property is $13,600.
Assume the QBI amount is net of the self-employment tax deduction.
What is their QBI deduction for the year?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started