Question: Evan and James are married. They file a joint return for 2023 on which they report taxable income before the QBI deduction of $150,000. Evan

Evan and James are married.  They file a joint return for 2023 on which they report taxable income before the QBI deduction of $150,000.  Evan operates a sole proprietorship, and James is a partner in JTP Partnership.  Both are a qualfied trade or business and neither is a specified services business.  Evan's sole proprietorship reports $112,500 of net income, W-2 wages of $33,750. and has qualified property of $37,500.  James' partnership reports a loss for the year, and her allocable share of the loss is $30,000.  the partnership reports no W-2 wages and James' share of the partnership's qualified property is $15,000.  What is their qualified business income deduction for the year?

 a.

$16,500

 

 b.

$8,813

 

 c.

$0

 

 d.

None of the choices presented are correct.

 

 e.

$22,500

 

 

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