Katrina, a single taxpayer, is a shareholder in Engineers One, a civil engineering company. This year, Katrinas share of net business income from Engineers One is $200,000 (net of the associated for AGI self-employment tax deduction). Assume that Katrinas allocation of wages paid by Engineers One to its employees is $300,000 and her allocation of Engineers Ones qualified property is $150,000 (unadjusted basis of equipment, all purchased within past three years). Assume Katrina has no other business income and no capital gains or qualified dividends. Her taxable income before the deduction for qualified business income is $400,000.

b. Is Katrina eligible for a QBI deduction?

c. Is Katrina subject to the wage-base limitation for her QBI deduction?

d. What is 50 percent of her allocable wages from her qualified business

($__________ 50% = ______)?

e. What is 25 percent of her allocable wages ($________ 25% = _______) plus 2.5 percent of the unadjusted basis of qualified property ($_______ 2.5% = $_______).

f. Is Katrinas QBI deduction limited by the greater of the two wage limitations?

g. Katrinas taxable income before the QBI deduction is _________________________.

h. Is Katrina subject to the taxable income limitation?

i. What is Katrinas QBI deduction?