Elliot operates his clothing store as a single member LLC (which he reports as a sole proprietorship). In 2020, his proprietorship generates qualified business income of $280,000, he pays W–2 wages of $170,000, and he has qualified business property of $140,000. Elliot’s wife, Julie, is an attorney who works for a local law firm and receives wages of $90,000. They will file a joint tax return and use the standard deduction($24,800).      Assume the QBI amount is net of the self-employment tax deduction.  What is Elliot’s qualified business income deduction?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Elliot operates his clothing store as a single member LLC (which he reports as a sole proprietorship). In 2020, his proprietorship generates qualified business income of $280,000, he pays W–2 wages of $170,000, and he has qualified business property of $140,000. Elliot’s wife, Julie, is an attorney who works for a local law firm and receives wages of $90,000. They will file a joint tax return and use the standard deduction($24,800).     

Assume the QBI amount is net of the self-employment tax deduction. 

What is Elliot’s qualified business income deduction?

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