Alice and Bob are a married couple. Alice runs her own toy store as a sole proprietorship. Her schedule C income is $200,000. Assume the sole proprietorship pays no wages, but has an original cost of qualified property of $400,000. Alice and Bob have no capital gains or losses and their total taxable income after all deductions is $250,000. How much is their Sec. 199A deduction? (Note: Assume, for purposes of this question, no "threshold amount" cost of Living Adjustment is required under Code section 199A(e)(2))

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To calculate Alice and Bobs Sec 199A deduction we need to follow these steps 1 Determine the qualifi... View the full answer