Problem $2-35($L$0.3,4)$

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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