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.