The purpose of this assignment is to calculate the QBI deduction at various taxable income before QBI thresholds.

Imagine that you are working as a certified public accountant $($CPA$)$ and you have the following case:

GJP Partnership is a calendar$-$year, non$-$publicly traded partnership doing business in the United States. The partners have contacted you inquiring about the Section $199$A qualified business income deduction. They have provided partnership information for Year $1$ in the exhibit below. The partners do not have any other sources of income in Year $1$ other than the partnership$-$related items provided. All of the partners are single and will use the single standard deduction of $$12,750$ on their individual federal income tax returns.

For this example, assume the QBI phaseout beings for Single taxpayers with income of $$170,050,$ fully phasing in at $220,050.$

Using the information provided above and, in the table, below, enter the amount of each partner$$s taxable income before the qualified business income $($QBI$)$ deduction and Section $199$A QBI deduction for Year $1$ under two independent assumptions about GJP Partnership's business:

Dental services $($teeth examinations and treatment$)$

Retail sales of dental supplies $($toothbrushes$,$ floss, etc.$)$

For purposes of this simulation, ignore any deduction for one$-$half of self$-$employment tax. Use positive, whole numbers, and if the amount is zero, enter a zero $(0).$ Please submit your responses to this Dropbox, here is a template you can use to submit your answers $($not required to be done this way, just an option$).\backslash$table$[[\backslash$table$[[$GJP Partners$],[$Partnership Financial Information$],[$December $31,$ Year $1]]],[$Line Item,Total,Gaby,Jimmy,Paul$],[$Type of Partner,N$/$A$,$General Partner,General Partner,Limited Partner$],[\backslash$table$[[$Share of Profits and$],[$Losses$]],100\%,20\%,30\%,50\%],[\backslash$table$[[$Partnership Ordinary$],[$Business Income$]],$$$650,000,$$$130,000,$$$195,000,$$$325,000],[\backslash$table$[[$Partnership Long$-$term$],[$Capital Gain$]],$$$37,750,$$$7,550,$$$11,325,$$$18,875],[\backslash$table$[[$Partnership Interest$],[$Income$]],$$$5,000,$$$1,000,$$$1,500,$$$2,500],[\backslash$table$[[$Guaranteed Income$],[$Payment to Gaby$]],$$$10,000,$$$10,000,$$$0,$$$0],[\backslash$table$[[$W$-2$ Wages Paid by$],[$Partnership$]],$$$250,000,$$$50,000,$$$75,000,$$$125,000],[\backslash$table$[[$Unadjusted Basis$],[$Immediately after$],[$Acquisition $($UBIA$)$ of$],[$Qualified Property$]],$$$150,000,$$$30,000,$$$45,000,$$$75,000]]$