Question

Tanuja Singh is a CPA and operates her own accounting firm (Singh CRA, LLC), As a single-member LLC, she reports her accounting firm operations as a sole proprietor. Tanuja has QEI fron her accounting firm of $540,000, reports w-2 wages oft $156,000, and the unadjusted basis of property used in the LLC is $425,000. Tanuja is married and will flea joint tar retunn nith her spoose Their taxable income befure the QB deduction is 475.000, and their modified taxable income is $448.000. what is Tanuja's OBI deductioin for 2019. O 75.000. BC149.625 DE None of these choices ars conect.

Answer 1

ANSWER D -0

Tanuja is not entitled to a QBI deduction in 2018. Her accounting firm is a "specified services" business and she and her spouse's taxable income before the QBI deduction ($475,000) exceeds the $415,000 threshold for 2018.