QUALFIED BUSINESS INCOME DEDUCTION PROBLEM:

Donald owns a landscaping business (not a specified service) as a sole proprietor. In 2021, the business had gross business income of $380,000, and business expenses of $92,000, which included wages paid of $60,000. The business had qualified business property of $320,000 in 2021. Daisy, Donalds wife, had total wages of $105,000. They had no other income, no dependents, and they want to take the standard deduction for 2021.

1. What is Donald and Daisys taxable income before the QBI deduction?

2. What is Donald and Daisys Qualified Business Income (QBI)?

3. What is Donald and Daisys Qualified Business Income Deduction? *****Round all calculations to nearest whole dollar or whole percent (no decimals)*****