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Gary is married and files a joint return. Gary owns a sole proprietorship with QBI of...

  1. Gary is married and files a joint return. Gary owns a sole proprietorship with QBI of $300,000. W-2 wages are $50,000 and the total basis of property held in the business was $750,000. His taxable income before his QBI deduction was $376,600 (which was also his modified taxable income). What is Gary’s QBI deduction?
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Answer #1

I have tried to explain as much clear as possible.

In case taxable income is less than $315,000 then QBI deduction is simply 20 percent. And in this case taxable income is $376,600,hence provision is applied as shown in the picture.

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