George and Nancy are married and will file a joint tax return. Nancy has a sole proprietorship (not a "specified services" business) that generates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds property with an unadjusted basis of $10,000. George is employed by a local school district. Their taxable income before the QBI deduction is $424,200(this is also their modified taxable income)