Dale and Eleanor are married taxpayers. In 2021, they will file a joint return and will take the $25,100 standard deduction. Dale is the owner of Just Delicious, a boutique candy store in Last Resort, Florida. Just Delicious, which Dale operates as sole proprietorship, had qualified business income of $500,000 in 2021. He paid $50,000 in w-2 wages (note: these wages are included in the $50,000 of qualified business income). In addition, the unadjusted basis in assets was $1,000,000 (this amount includes candy making equipment as well as retail fixtures). Eleanor is director of human resources for a large corporation. Dale and Eleanor’s gross income excluding the $500,000 from Just Delicious was $300,000 Assume that instead of owning and operating Just Delicious, Dale was a CPA earning $500,000. He paid w-2 wages of $50,000 and the unadjusted basis of his computers and office furnishings was $600,000. They continue to take the $25,100 standard deduction rather than itemize. Under this scenario, what is Dale and Eleanor’s taxable income in 2021?
Dale and Eleanor are married taxpayers. In 2021, they will file a joint return and will take the $25,100 standard deduction. Dale is the owner of Just Delicious, a boutique candy store in Last Resort, Florida. Just Delicious, which Dale operates as sole proprietorship, had qualified business income of $500,000 in 2021. He paid $50,000 in w-2 wages (note: these wages are included in the $50,000 of qualified business income). In addition, the unadjusted basis in assets was $1,000,000 (this amount includes candy making equipment as well as retail fixtures). Eleanor is director of human resources for a large corporation. Dale and Eleanor’s gross income excluding the $500,000 from Just Delicious was $300,000
Assume that instead of owning and operating Just Delicious, Dale was a CPA earning $500,000. He paid w-2 wages of $50,000 and the unadjusted basis of his computers and office furnishings was $600,000. They continue to take the $25,100 standard deduction rather than itemize.
Under this scenario, what is Dale and Eleanor’s taxable income in 2021?
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