Answer:
Compute Marcia's QBI deduction, assuming her overall taxable income before QBI is $300,000.
Compute Marcia's QBI deduction, assuming her overall taxable income before QBI is $180,000.
Explanation:
Marcia's QBI deduction limits:
lower between 20% of QBI or taxable income
$240,000 x 20% = <u>$48,000</u>
$300,000 x 20% = $60,000
or
higher between 50% of wages or 25% of wages + 2.5% of business property
$80,000 x 50% = <u>$40,000</u>
($80,000 x 25%) + (2.5% x $50,000) = $21,250
Marcia's QBI deduction limits:
lower between 20% of QBI or taxable income
$180,000 x 20% = <u>$36,000</u>
$300,000 x 20% = $60,000
or
higher between 50% of wages or 25% of wages + 2.5% of business property
$80,000 x 50% = <u>$40,000</u>
($80,000 x 25%) + (2.5% x $50,000) = $21,250
