Calculate james qbi deduction

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James Jones is the owner of a small retail business operated as a sole proprietorship. During 2019, his business recorded the following items of income and expense:

Revenue from inventory sales$147,000

Cost of goods sold 33,500

Business license tax 2,400

Rent on retail space 42,000

Supplies 15,000

Wages paid to employees 22,000

Payroll taxes 1,700

Utilities 3,600

Question 1: Assume that James's business is not a service business, and that it has $155,000 unadjusted basis in tangible depreciable property. Calculate James's 2019 QBI deduction, before any overall taxable income limitation.

Reference no: EM132585370

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