Rebecca and Brad Are Married and Will File Jointly

question 64

Essay

Rebecca and Brad are married and will file jointly. Rebecca earns $300,000 from her single-member LLC (a law firm). She reports her business as a sole proprietorship. Wages paid by the law firm amount to $40,000? the law firm has no significant property. Brad is employed as a tax manager by a local CPA firm. Their modified taxable income is $381,400 (this is also their taxable income before the deduction for qualified business income). Determine their QBI deduction for 2019.

---

Definitions:

Organizational Culture

The shared values, beliefs, and norms that influence the way employees think, feel, and behave within an organization.

Trust and Learning

The relationship between trusting relationships, which facilitate openness and vulnerability, and the creation of an environment conducive to learning and knowledge sharing.

Peter Drucker

A renowned management consultant, educator, and author, considered the father of modern management.

Delegation

The assignment of responsibility and authority to someone else while retaining ultimate accountability.