199A example

My coworker and I try to figure out 199A for study. The number we used are for practice only.
Taxpayers own a non-specified service S Corp, rental activities, have W2, dividend and interest income, social security income, file MFJ.
Business 1: S Corporation (100% owned by TP)
Gross receipt 220M
Less: Cost of sold 170M
Equals: gross profit 50M
Less: Shareholder income 1M
Less: Administration salary 9M
Less: other administration expense 20M
Net business Income: 20M
Total W-2 from the business (included in the cost of sold and admin salary, shareholder salary) 70M
Business 2: Rental activities
Net profit from rental: 2M
Property purchased in 2016 $29M
Social security income 1099-SSA 40K, taxable amount 33K
1099-Div 1099-int: 20K
No capital gain or loss
Salary income 1M
AGI: 23.05M
Itemized deduction 500K
TI: 22.5M
199A deduction for Business 1: 20M*.20%=4M ( the 50% w2 limitation is way above 20%QBI)
199A deduction for Business 2: 2M*.20%=0.4M (the 2.5% basis limitation is above 50%QBI)
Total 199A deduction is 4.4M

Are there any other limitation we missed on this example?

Thank you,

We have tried Watson CPA Group examples posted on its website. It is a big help. However, we realized in the bay area, some business's owner generate one more digits for the income, revenue, deduction etc. than the examples givne in the Watson CPA Group website.

Are there any cap for the non-specific service QBI 199A deduction?

The domestic deduction (section 199) for the example in the first post would be 1.8M (lessor of 20M*9% or salaries 70M*50%).

Did you check the QBI deduction is limited by the 20%-of taxable-income threshold ?

Yes, TI is 22.5M and dividend & interest income is 20K. It is still higher than QBI total. We are concerned whether there is a ceiling/cap for 199A deduction.

As far as we know, there is no ceiling/cap for the deduction. Anyone has different opinions regarding this?

Thank you!

Haven't heard of a CAP. This is a good example of how tax reform works to give people a benefit. The only limit is for those specified service people because, as we all know, they really are the rich.

Thank you!