Jason and Paula Are Married

question 61

Multiple Choice

Jason and Paula are married. They file a joint return for 2019 on which they report taxable income before the QBI deduction of $200,000. Jason operates a sole proprietorship, and Paula is a partner in the PQRS Partnership. Both are a qualified trade or business and neither is a specified services business. Jason's sole proprietorship reports $150,000 of net income, W-2 wages of $45,000, and has qualified property of $50,000. Paula's partnership reports a loss for the year, and her allocable share of the loss is $40,000. The partnership reports no W-2 wages and Paula's share of the partnership's qualified property is $20,000. What is their qualified business income deduction for the year?

• A) $-0-.
• B) $11,750.
• C) $22,000.
• D) $30,000.
• E) None of these.

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Definitions:

Time-Released

Refers to a method of delivering a substance (such as medication) in a manner that allows it to be released slowly and steadily into the bloodstream over time.

Agonist

A chemical or drug that binds to receptors in the body and activates them to produce a biological response.

Stimulates

To encourage something to grow, develop, or become active.

Pharmacodynamic

The branch of pharmacology concerned with the effects of drugs and the mechanism of their action in the body.