Kevin and Connie are a married couple. In 2020, Connie worked as an employee at Zell Corporation and Kevin had a hardware store which he operated as a sole proprietorship. In 2020, the sole proprietorship had $600,000 of qualified business income. Kevin and Connie had taxable income of $700,000 before considering any qualified business income deduction. Kevin and Connie take the standard deduction of $24,800. Assume Kevins sole proprietorship paid w-2 wages of $200,000 and had depreciable assets with an unadjusted basis of $900,000.

1.Determine Kevin and Connies qualified business income deduction, if any, for 2020.

2. Determine Kevin and Connies taxable income after taking into account all deductions.