Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2019, the plumbing business has gross business income of $421,000 and business expenses of $267,000, including wages paid of $58,000. The business sold some land that had been held for investment generating a long-term capital gain of $15,000. The business has $300,000 of qualified business property in 2019. Rob's wife, Marie, has wage income of $250,000. They jointly sold stocks in 2019 and generated a long-term capital gain of $13,000. Rob and Marie have no dependents and in 2019, they take the standard deduction of $24,400. The income threshold for QBI limitations starts at $321,400 for married filing jointly taxpayers. a.  What is Rob and Marie's taxable income before the QBI deduction? $407,600 b.  What is Rob and Marie's QBI? $154,000 c.  What is Rob and Marie's QBI deduction? $29,248   complete Form 8995-A to report Rob’s QBI deduction.  2 Qualified business income from the trade, business, or aggregation. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 154000       3 Multiply line 2 by 20% (0.20). If your taxable income is $160,700 or less ($160,725 if married filing separately; $321,400 if married filing jointly), skip lines 4 through 12 and enter the amount from line 3 on line 13 . . . . 3 30800       4 Allocable share of W-2 wages from the trade, business, or aggregation . . . 4 58000       5 Multiply line 4 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 29000       6 Multiply line 4 by 25% (0.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 14500       7 Allocable share of the unadjusted basis immediately after acquisition (UBIA) of all qualified property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 300000       8 Multiply line 7 by 2.5% (0.025) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7500       9 Add lines 6 and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 22000       10 Enter the greater of line 5 or line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 29000       11 W-2 wage and qualified property limitation. Enter the smaller of line 3 or line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 29000       12 Phased-in reduction. Enter amount from line 26, if any. See instructions 12         13 Qualified business income deduction before patron reduction. Enter the greater of line 11 or line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13         14 Patron reduction. Enter the amount from Schedule D (Form 8995-A), line 6, if any . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14         15 Qualified business income component. Subtract line 14 from line 13 15         16 Total qualified business income component. Add all amounts reported on line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .► 16   17 Enter amounts from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17   30800           18 Enter the amounts from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18   29000           19 Subtract line 18 from line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19   1800           20 Taxable income before qualified business income deduction . . . . . . . . . . . . . . . . . . 20               21 Threshold. Enter $160,700 ($160,725 if married filing separately; $321,400 if married filing jointly) . . . . . . . . . . . . . . . 21   321400           22 Subtract line 21 from line 20 . . . . . . . . . . 22               23 Phase-in range. Enter $50,000 ($100,000 if married filing jointly) . . . . . . . . . . . . . 23   100000           24 Phase-in percentage. Divide line 22 by line 23 . . . . . . . . . . . . . . . . . . . . . . . . 24               25 Total phase-in reduction. Multiply line 19 by line 24 . . . . . . . . . . . . 25               26 Qualified business income after phase-in reduction. Subtract line 25 from line 17. Enter this amount here and on line 12, for the corresponding trade or business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2022. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather's support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,250 to move their personal belongings, and she and Heather spent two days driving the 1,600 miles to Georgia. Reba rented a home in…

ces Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance $580 545 Advertising expense Mortgage interest Property taxes 4,550 960 Repairs & maintenance Utilities 1,160 Depreciation 720 9,700 During the year, Tamar rented out the condo for 81 days, receiving $23,500 of gross income. She personally used the condo for 57 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Tamar uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions…

Jackson, a head of household taxpayer, has a 20-year-old daughter, Emma, who attends the University of Minnesota full-time. During 2020, Jackson incurred the following expenses related to Emma's education: 1. Tuition and fees - $13,750 2. Textbooks - $785 3. Rent for campus apartment - $4,200 4. Campus dining plan - $2,150 5. Laptop - $3,600 6. Clothes, toiletries, transportation - $1,890 Jackson paid for Emma's living expenses out of pocket each month, but he took out a loan to cover her tuition and fees, the campus dining plan, and her laptop. During 2020, he paid a total of $895 of interest on that loan. Assuming that Jackson is not subject to an AGI limitation, how much of Emma's college expenses can Jackson deduct in 2020?