Question

Peter Samuels owns and manages his single-member LLC that provides a wide variety of financial services to his clients. He is married and will file a joint tax return with his spouse, Amy. His LLC reports $300,000 of net income, W–2 wages of $120,000, and assets with an unadjusted basis of $75,000. Their taxable income before the QBI deduction is $285,000 (this is also their modified taxable income). Determine their QBI deduction for 2018.

Answer 1

Will get 57.000 QBI

Step-by-step explanation:

Net income = $300.000

QBI deduction = $285.000

w-2 wages = $120.000

assets (unadjusted basis) = $75.000

Their maximum possible pass through deduction is 20% of $285.000 = 57.000

As the income is not over $415.000 peter samuels do not qualify for the deduction of w-2 wages.

Will get 57.000 QBI