Determine Stellas QBI deduction

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Problem - Stella Watters is a CPA and operates her own accounting firm (Watters CPA LLC). As a single member LLC, Stella reports her accounting firm operations as a sole proprietor. Stella has QBI from her accounting firm of $540,000, she reports W-2 wages of $156,000, and the unadjusted basis of property used in the LLC is $425,000. Stella is married and will file a joint tax return with her spouse. Their taxable income before the QBI deduction is $475,000, and their modified taxable income is $448,000. Determine Stella's QBI deduction for 2019.

Reference no: EM132660501

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