What is their QBI deduction for the year

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Problem - Jason and Paula are married. They file a joint return for 2019 on which they report taxable income before the QBI deduction of $200,000. Jason operates a sole proprietorship, and Paula is a partner in the PQRS Partnership. Both are a qualified trade or business, and neither is a specified services business. Jason's sole proprietorship reports $150,000 of qualified business income, reports W-2 wages of $45,000, and owns qualified property of $50,000. Paula's partnership reports a loss for the year, and her allocable share of the loss is $40,000. The partnership reports no W-2 wages, and Paula's share of the partnership's qualified property is $20,000. What is their QBI deduction for the year?

Reference no: EM132660495

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