Scott and Laura are married and will file a joint tax return. Scott owns a sole proprietorship (not a 'specified services' business) that reports net...
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Scott and Laura are married and will file a joint tax return. Scott owns a sole proprietorship (not a "specified

services" business) that reports net income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds property with an unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI deduction is $375,000 (this is also their modified taxable income).

a, What is their tentative QBI based on the W-2 Wages/Capital Investment Limit?

b, Determine their allowable QBI deduction.

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