Keiji Jones is the owner of a small retail business operated as a sole proprietorship. During 2021, his business recorded the following items of income and expense:

Revenue from inventory sales	$ 147,000
Cost of goods sold	33,500
Business license tax	2,400
Rent on retail space	42,000
Supplies	15,000
Wages paid to employees	22,000
Payroll taxes	1,700
Utilities	3,600

Required:

Assume that Keijis business is not a service business, and that it has $155,000 unadjusted basis in tangible depreciable property. Calculate Keijis 2021 QBI deduction, before any overall taxable income limitation.

Were SALES-COGS-OPERATING EXPENSES=TAXABLE INCOME = 26,800.

ANSWER $5,360 Is not correct