Question

please answer the followinh question part a, b and c

0:47 Qualified Business Income Deduction-One Partnership. Kelly and Mark are a married couple that file a joint tax return. Kelly owns a 30% in a partnership that operates a retail business. Her share of partnership income is $180,000. Her allo- cable shares of W-2 wages paid by the partnership to its employees and unadjusted basis of qualified property are $50,000 and $1,000,000. Kelly and Mark's total taxable income for the year was $305,000. a. What is the QBI deduction that Kelly and Mark can take on their tax return this year? b. Assume, instead that Kelly and Mark's total taxable income for the year was $400,000. What is the QBI deduction that Kelly and Mark can take this year? c. Assume the partnership was a service partnership and total taxable income was $400,000. What is the QBI deduction that Kelly and Mark can take this year?

Answer 1

Basic QBI Deductions are:

20%*QBI

Limitation for Married Filing Jointtly -321400-421400

In first Case The Total Taxable Income is 300000 which comes under the category of less than $321400; where full 20% is deducted

In second case; The Total Taxable Income are 400000 which comes under the category of less than $321400; where full 20% is deducted

In third it will follow same procedure as in second case.