Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified services" business) that generates qualified business income of $300,000. The proprietorship pays W–2 wages of $40,000 and holds qualified property with an unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI deduction is $381,400 (this is also their modified taxable income). Determine their allowable QBI deduction.

Income Tax Fundamentals 2020
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Author:WHITTENBURG
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Chapter2: Gross Income And Exclusions
Section: Chapter Questions
Problem 34MCQ: Dana and Larry are married and live in Texas. Dana earns a salary of $45,000 and Larry has $25,000...
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Problem 9-45 (LO. 6)

Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified services" business) that generates qualified business income of $300,000. The proprietorship pays W–2 wages of $40,000 and holds qualified property with an unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI deduction is $381,400 (this is also their modified taxable income).

Determine their allowable QBI deduction.
$fill in the blank 1

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