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For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Form 8995-A (2021) Part III Phased-in Reduction Complete Part III only if your taxable income is mare than $164,900 but not $214,900 $320.800 and $429.800 if married ning joint/y) and hine 10 is less than Hine 3. Otherwise All work swed. b. What is Rob and Marie's QB? Fosibask voou uy Wot - Correct c. What is Rob and Marie's Q8i deduction? TOea My Wos Incorract Complete form 8995-A to report Rob's Q1 deduction. Since the 2022 version was not Twvailable, 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 raturns). Problem 4-20 Qualified Busness Income (Q91) Deduction (LO 4,11) Rlob Wriggle operates a small plumbing supplies business as a sole proprietor, In 2022, the plumbing business has gross business income of \$177,000 and business expenses of $267,000, induding wages paid of $8,000. 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 Q\$i limitotions starts at $340,100 for married filing jointly taxpayers. a. What is Rob and Marie's taxable income before the QBI deduction? X Festeack r ches Mr wonk The QBi deduction is a new deduction for individual taxpayers roporting income from a pass-through entity such as a sole proprietorahip, partrerahip, limited liablity company, or S corporation. The Qot deduction is avaltable to individual taxpayers as a "below the line" deduction (after adjusted gross incerne) and is also available to taxpayers who take the standard deduction. The deduction is generally 20 percent of a taxpayer's qualified business income (QBI) from the pass-through entity. However, the QBI deduction is subject to a number of timitations and exceptions. b. What is Rob and Marie's QBI? Complete Form 8995-A to report Rob's Qei deouction. Since the 2022 version was not avallable, the prior year form included in the textbook is being used. Be sure ad use updated income limits on Line 3 and Une 21($340,100 for married filing joint returns, $170,050 for all other returns) tine 23 24 % 25 Total phase-in reduction. Multiply line 19 by line 24 26 Quolified business income after phase-in recuction, Subtract line 25 from Ine 17. Enter this amount here and on line 12, for the corresponding trade or business Part IV Determine Your Qualified Business Income Deduction 27 Total qualified business income component from all qualified trodes, businesses, or aggregations. Enter the amount from line 16 28 Qualified REIT dividends and publicly traded partnership (PTP) income or (loss). See instructions 29 Quelified RErT dividends and PTP (loss) camylorward from prior years 30 Total qualified RerT dividends and PTP income. Combine lines 28 and 29. If less than zero, enter -0 - 31 REIT and PTP component. Mulsiply line 30 by 20%(0.20). 32 Qualined business income deduction before the income limitation. Add lines 27 and 31 33 Taxable income before qualified business inceme deduction 34 Nt capital gain. Sec 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 belore the demestic preduction activities deduction (OPAD) under section 199A(9). Enter the smaller of line 32 or line 36 38 DPAD under section 199A(9) allocatod from an agricultural or horticultural cooperatve. Don t enter more thas line 33 minus line 37 39 Total qualified business incorne deduction. Add lines 37 and 38 Geck My Wok Previous All work saved. Emat Intcruster Sowe and Exat Submit Assignment for Gr 31 REIT and PTP component. Mulkiply line 30 by 20%(0.20) 32 Qualified bushess income deduction before the income limitation. Add lines 27 and 31 33 Taxable income before qualified business income deduction. 34 Not capital gain. See instructions 35 Subtract line 34 from line 33. If zero or less, enter -0- 36 Income limitation. Multiply tine 35 by 20%(0.20) 37 Qualified business income decuction before the domestic prodiction 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 quained Rert dividends and PTP (loss) carryforward. Combine lines 28 and 29 . If zero or greater, enter - 0 - Form 8995-A (2021) Fendiack: rches Wr Wuik Partialy comect rowin wos Partially correct Previous All work saved. Part II Determine Your Adjusted Qualified Business Income 2 Qualilied business income from the trade, business, or aggregation. See instructions 3 Multiply ine 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 amaunt from line 3 on line 13. 4 Alocable share of W2 wages from the trade, business, of aggregation... 5 Multiply line 4 by 50%(0.50) 6 Multiply line 4 by 25%(0.25) 7 Allocable share of the unadjusted basis immediately after acquisition (UBia) of all qualified property b Mult ply line 7 by 2.5%(0.025) 9 Add lines 6 and 8 10 Enter the greater of line 5 or line 9 11 W-2 wage and UBLA of qualified property limitation. Enter the smaller of line 3 or line 10 12 Pnased in reduction. Enter the amount from line 26, 4 any. See instructions 13 Qualified business income deduction before patron reduction, Enter the greater of line 11 or line 12 14 Patron reduction. Enter the amount from Schedule D (Form 8995A ), line 6 , if any, See instructions 15 Qualified business income component. Subtract line 14 from line 13 Previous All work seved. Emal Inatruxter. Save and Ex: Submit Assignment for G