Reference no: EM132637773

Problem - The QBI Deduction. Cory, a married filing jointly taxpayer, receives $200,000 in partnership income on a K-1 from ABC, LLC, Cory's spouse earns no income, and the couple takes the standard deduction of $24,000 against any ordinary income. Please calculate the QBI deduction for each of the following alternative additional facts (please disregard SECA/employment taxes):

a. Assume Cory also earns $100,000 of capital gains and $10,000 of qualified dividends, both from sources unrelated to ABC, LLC. Would your answer change if these additional items of income were sourced from the partnership and included on Cory's K-1?

b. Disregarding the facts in (a) above, assume Cory also earns $20,000 of REIT income;

c. Disregarding (a)-(b) above, assume the partnership income allocable to Cory is $2,000,000 and the partnership is defined as a specified service trade or business.

d. Disregarding (a)-(c) above, assume the partnership income allocable to Cory is $2,000,000, but the partnership is not a specified service trade or business. Also, the partnership pays $600,000 of W-2 wages and the partnership's unadjusted basis in qualified property is $8,000,000.