Question
Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2021, the plumbing business has gross business income of $421,000 and business
Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2021, the plumbing business has gross business income of $421,000 and business expenses of $267,000, including wages paid of $58,000. The business sold some land that had been held for investment generating a long-term capital gain of $15,000. The business has $300,000 of qualified business property in 2021. Rob's wife, Marie, has wage income of $250,000. They jointly sold stocks in 2021 and generated a long-term capital gain of $13,000. Rob and Marie have no dependents and in 2021, they take the standard deduction of $25,100. The income threshold for QBI limitations starts at $321,400 for married filing jointly taxpayers.
What is Rob and Marie's QBI deduction?
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