Question: Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a specified services business. In 2023, the business

Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2023,

the business pays $60,000 of W-2 wages, has $150,000 of qualified property, and generates $200,000 of qualified business income. Kyra

also has a part-time job earning wages of $12,200 and receives $3,650 of interest income. Her standard deduction is $13,850.

Assume the QBI amount is net of the self-employment tax deduction.

What is Kyra's tentative QBI based on the W-2 Wages/Capital Investment Limit?

Determine Kyra's allowable QBI deduction.

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