Question 1 Ashley (a single taxpayer) is the sole owner of ABC LLC. The LLC (treated as a sole proprietorship for Federal income tax purposes) reports QBI of $900,000 and is not a specified services" business. ABC paid total W-2 wages of $300,000, and the total unadjusted basis of property held by ABC is $30,000. Ashley's taxable income before the QBI deduction is $740,000 (this is also her modified taxable income). What is Ashley's QBI deduction for 2020? Question 2 Diego and Molly are married and will file a joint return. Diego earns $300,000 from his single member LLC (a law firm), which the tax law treats as a sole proprietorship. Wages paid by the law firm amount to $40,000; the law firm owns no significant property. Molly is employed as a tax manager by a local CPA firm. Diego and Molly's modified taxable income is $381,400(this also equals taxable income before the QBI deduction). What is their tentative QBI based on the W-2 Wages/Capital Investment Limit? Determine their allowable QBI deduction? Question 3 Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2020, the business pays $100,000 in W-2 wages, holds $150,000 of qualified property, and reports $350,000 of qualified business income (all of which is qualified business income). Susan has no other items of income or loss and will take the standard deduction. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's qualified business income deduction? Question 4 Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2020, the business pays $60,000 of W-2 wages and reports qualified business income of $200,000. Susan also has a part-time job earning wages of $11,000 and receives $3,200 of interest income. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's tentative QBI based on the W-2 Wages/Capital Investment Limit? Determine Susan's allowable QBI deduction