Dan and Katlyn are married and operate a pizza restaurant as an S corporation. In 2018, the store has qualified business income of $300,000. Their itemized deductions are $22,000 and they have other income from interest and dividends of $9,000. What is their QBI deduction for 2018? What is their taxable income?

a. Assume the same facts as above, except that Dan and Katlyn are lawyers and jointly operate their law firm as a partnership. The income that flows to them from the partnership is $380,000. In addition, they have capital gains of $5,000. What is their QBI deduction for 2018? What is taxable income?

b. Assume the facts of the original problem except that their itemized deductions are $32,000, the QBI from the business is $500,000, it has W-2 wages of $160,000, and unadjusted depreciable property of $180,000. What is their QBI deduction for 2018? What is her taxable income?