Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2019, the business pays $100,000 in W2 wages, holds $150,000 of qualified property, and generates $150,000 of 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.

A- What is Susan's QBI deduction?

Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2019, the business pays $60,000 of W2 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.

B- What is Susan's tentative QBI based on the W2 Wages/Capital Investment Limit?

C- Determine Susan's allowable QBI deduction.