Find the qualified business income deduction

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Tom and Anne Marie are married taxpayers who file a joint return. Tom has a sole proprietorship (not a specified service business) that generates qualified business income of $300,000. The proprietorship pays W-2 wages of $80,000 and holds property with an unadjusted basis of $120,000. Anne Marie is an employee of a large corporation. Their taxable income before the QBI deduction is $600,000 (this amount includes income from Tom's business and their itemized deductions). This is also their modified adjusted gross income. Note: you can use the limitation applicable in 2018

Problem 1: Find their qualified business income deduction for 2018

Reference no: EM132914052

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