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Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is...

Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2020, the business pays $60,000 of W–2 wages, has $150,000 of qualified property, and generates $200,000 of qualified business income. Susan also has a part-time job earning wages of $11,100 and receives $3,300 of interest income. Her standard deduction is $12,400.

1.What is Susan's tentative QBI based on the W–2 Wages/Capital Investment Limit?

2. Determine Susan's allowable QBI deduction.

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