Jason and Paula Are Married

question 47

Multiple Choice

Jason and Paula are married. They file a joint return for 2018 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 the above.

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Definitions:

Coma

A deep state of prolonged unconsciousness in which a person cannot be awakened and fails to respond to painful stimuli, light, or sound.

Anterograde Amnesia

is a condition affecting memory, where an individual struggles to form new memories following the onset of amnesia, although long-term memories from before the event may remain intact.

New Memories

Recently formed mental representations of past experiences, which are stored in the brain for recall.

Associations

Connections or links between thoughts, ideas, or memories that can influence an individual's emotional responses and behavior.