Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2022 , 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 2022 . Rob's wife, Marie, has wage income of $250,000. They jointly sold stocks in 2022 and generated a long-term capital gain of $13,000. Rob and Marie have no dependents and in 2022, they take the standard deduction of $25,900. The income threshold for QBI limitations starts at $340,100 for married filing jointly taxpayers. a. What is Rob and Marie's taxable income before the QBI deduction? s X b. What is Rob and Marie's QBI? c. What is Rob and Marie's QBI deduction? $x Complete Form 8995-A to report Rob's QBI deduction. Since the 2022 version was not available, the prior year form included in the textbook is being used. Be sure and use updated income limits on Line 3 and Line 21 ( $340,100 for married filing joint returns, $170,050 for all other returns). OMB No. 15452294 2 Qualified business Income from the trade, business, or aggregation. see instructions . . . . . . . . . . . . . . . . . . 3 Multiply line 2 by 20%(0.20). If your taxable income is $164,900 or less ( $164,925 if married filing separately; $329,800 if married filing jointly), skip lines 4 through 12 and enter the amount from line 3 on line 13 . . . 4 Allocable share of W2 wages from the trade, business, or aggregation . . . 5 Multiply line 4 by 50%(0.50) 7 Allocable share of the unadjusted basis immediately after acquisition (UBIA) of all qualified property 10 Enter the greater of line 5 or line 9 11W2 wage and UBIA of qualified property limitation. Enter the smaller of ..... 12 Phased-in reduction. Enter the amount from line 26, if any. See instructions 13 Qualified business income deduction before patron reduction. Enter the 14 Patron reduction. Enter the amount from Schedule D (Form 8995-A), line 6, if any. See instructions . . . . . . . . . . . . . For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Form 8995-A (2021) 23 Phase-in range. Enter $50,000($100,000 if married filing jointly) 24 Phase-in percentage. Divide line 22 by line 23 Part IV Determine Your Qualified Business Income Deduction 27 Total qualified business income component from all qualified trades, businesses, or aggregations. Enter the amount from line 16 . . 28 Qualified REIT dividends and publicly traded partnership (PTP) income or (loss). See instructions 29 Qualified REIT dividends and PTP (loss) carryforward from prior years 30 Total qualified REIT dividends and PTP income. Combine lines 28 and 29. If less than zero, enter -0- 31 REIT and PTP component. Multiply line 30 by 20%(0.20) 34 Net capital gain. See instructions 35 Subtract line 34 from line 33. If zero or less, enter -0- 36 Income limitation. Multiply line 35 by 20%(0.20) 37 Qualified business income deduction before the domestic production activities deduction (DPAD) under section 199A(g). Enter the smaller of line 32 or line 36 38 DPAD under section 199A(g) allocated from an agricultural or horticultural cooperative. Don't enter more than line 33 minus line 37 39 Total qualified business income deduction. Add lines 37 and 38 40 Total qualified REIT dividends and PTP (loss) carryforward. Combine lines 28 and 29. If zero or greater, enter -0- \begin{tabular}{|l|l} \hline 35 & \\ \hline 36 & \\ \hline 37 & \\ \hline 38 & \\ \hline 39 & \\ \hline & \\ & \\ & \\ & \\ \end{tabular} Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2022 , 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 2022 . Rob's wife, Marie, has wage income of $250,000. They jointly sold stocks in 2022 and generated a long-term capital gain of $13,000. Rob and Marie have no dependents and in 2022, they take the standard deduction of $25,900. The income threshold for QBI limitations starts at $340,100 for married filing jointly taxpayers. a. What is Rob and Marie's taxable income before the QBI deduction? s X b. What is Rob and Marie's QBI? c. What is Rob and Marie's QBI deduction? $x Complete Form 8995-A to report Rob's QBI deduction. Since the 2022 version was not available, the prior year form included in the textbook is being used. Be sure and use updated income limits on Line 3 and Line 21 ( $340,100 for married filing joint returns, $170,050 for all other returns). OMB No. 15452294 2 Qualified business Income from the trade, business, or aggregation. see instructions . . . . . . . . . . . . . . . . . . 3 Multiply line 2 by 20%(0.20). If your taxable income is $164,900 or less ( $164,925 if married filing separately; $329,800 if married filing jointly), skip lines 4 through 12 and enter the amount from line 3 on line 13 . . . 4 Allocable share of W2 wages from the trade, business, or aggregation . . . 5 Multiply line 4 by 50%(0.50) 7 Allocable share of the unadjusted basis immediately after acquisition (UBIA) of all qualified property 10 Enter the greater of line 5 or line 9 11W2 wage and UBIA of qualified property limitation. Enter the smaller of ..... 12 Phased-in reduction. Enter the amount from line 26, if any. See instructions 13 Qualified business income deduction before patron reduction. Enter the 14 Patron reduction. Enter the amount from Schedule D (Form 8995-A), line 6, if any. See instructions . . . . . . . . . . . . . For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Form 8995-A (2021) 23 Phase-in range. Enter $50,000($100,000 if married filing jointly) 24 Phase-in percentage. Divide line 22 by line 23 Part IV Determine Your Qualified Business Income Deduction 27 Total qualified business income component from all qualified trades, businesses, or aggregations. Enter the amount from line 16 . . 28 Qualified REIT dividends and publicly traded partnership (PTP) income or (loss). See instructions 29 Qualified REIT dividends and PTP (loss) carryforward from prior years 30 Total qualified REIT dividends and PTP income. Combine lines 28 and 29. If less than zero, enter -0- 31 REIT and PTP component. Multiply line 30 by 20%(0.20) 34 Net capital gain. See instructions 35 Subtract line 34 from line 33. If zero or less, enter -0- 36 Income limitation. Multiply line 35 by 20%(0.20) 37 Qualified business income deduction before the domestic production activities deduction (DPAD) under section 199A(g). Enter the smaller of line 32 or line 36 38 DPAD under section 199A(g) allocated from an agricultural or horticultural cooperative. Don't enter more than line 33 minus line 37 39 Total qualified business income deduction. Add lines 37 and 38 40 Total qualified REIT dividends and PTP (loss) carryforward. Combine lines 28 and 29. If zero or greater, enter -0- \begin{tabular}{|l|l} \hline 35 & \\ \hline 36 & \\ \hline 37 & \\ \hline 38 & \\ \hline 39 & \\ \hline & \\ & \\ & \\ & \\ \end{tabular}