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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 $100,000 in W2 wages, has $150,000 of qualified property, and generates $150,000 of qualified business income. Kyra has no other items of income, deduction, or loss and will take the standard deduction of $12,550.
Assume the QBI amount is net of the self-employment tax deduction.
What is Kyra's QBI deduction?
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