Answer:
a. Taxable income before the QBI deduction = $408,000
b. QBI = $154,000
c. Net QBI deduction = $29,126
Explanation:
a. Taxable income statement
Marie wage income $250,000
Business income
($421,000 - $267,000) $154,000
Long term capital gain
($13,000 + $15,000) $28,000
Total income $432,000
Less: Standard deduction $24,000
Taxable income before the QBI deduction $408,000
b. Rob and Marie's QBI
Statement Showing QBI
Gross income $421,000
Less: Business income $267,000
QBI $154,000
c. Rob and Marie's QBI deduction
QBI deduction percentage × QBI
= 20% × $154,000
= $30,800
or
20% × ($408,000 - $28,000)
= $76,000
whichever less
Before phaseout QBI Deduction = $30,800
Net QBI deduction = Allowable QBI deduction - Phaseout reduction
= $30,800 - $1,674
= $29,126
