Ben and Molly are married and will file jointly. Molly generates $300,000 of qualified business income...

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Ben and Molly are married and will file jointly. Molly generates $300,000 of qualified business income from her single member LLC (a law firm). She reports her business as a sole proprietorship. Wages paid by the law firm amount to $40,000; the law firm has no significant property. Ben is employed as a tax manager by a local CPA firm. Their modified taxable income is $424,200 (this is also their taxable income before the deduction for qualified business income). What is their tentative QBI based on the W-2 Wages/Capital Investment Limit? Determine their allowable QBI deduction for 2023. Ben and Molly are married and will file jointly. Molly generates $300,000 of qualified business income from her single member LLC (a law firm). She reports her business as a sole proprietorship. Wages paid by the law firm amount to $40,000; the law firm has no significant property. Ben is employed as a tax manager by a local CPA firm. Their modified taxable income is $424,200 (this is also their taxable income before the deduction for qualified business income). What is their tentative QBI based on the W-2 Wages/Capital Investment Limit? Determine their allowable QBI deduction for 2023.

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To calculate the tentative Qualified Business Income QBI based on the W2 WagesCapital Investment Lim... View the full answer