Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a specified services business. In 2021, the business
Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2021, the business pays $60,000 of W2 wages, has $150,000 of qualified property, and generates $200,000 of qualified business income. Kyra also has a part-time job earning wages of $11,200 and receives $3,350 of interest income. Her standard deduction is $12,550.
Assume the QBI amount is net of the self-employment tax deduction.
What is Kyra's tentative QBI based on the W2 Wages/Capital Investment Limit?
Determine Kyra's allowable QBI deduction.
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