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Scenario 1: Jack and Ryan formed a partnership in 2023. In return...

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Accounting

Scenario 1: Jack and Ryan formed a partnership in 2023. In return for the cash that he contributed, Jack received a 75% interest in capital and profits of the partnership. In return for the cash that he contributed, Ryan received the remaining 25% interest in capital and profits of the partnership.
During 2023, the partnership had the following items of income and expense:
Operating income $160,000
(this included W-2 wages paid to employees of $40,000)
Sec 1231 gain $20,000
STCG $30,000
Determine the qualified business income deduction for each partner if the partnerships principal business is manufacturing and it operates only in the U.S. Assume that Jack and Ryan are both married taxpayers, both take the standard deduction ($27,700), and Jack has other gross income of $500,000 while Ryan has other gross income of $100,000. The partnership has no assets with an unadjusted basis and the W-2 wages are allocated 75%/25% to the partners.
Scenario 2: How would your answer change for the QBID if the partnerships principal business was providing accounting services?

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