Felipe, a single taxpayer, is a technology consultant who operates as a sole proprietorship. Felipe’s net business income is $600,000 (net of the associated for AGI self-employment tax deduction), he pays wages of $100,000 to his employees, and he has $200,000 of qualified property (unadjusted basis). Felipe’s taxable income before the deduction for qualified business income is $500,000. Assume he has no capital gains or qualified dividends. Required: a. Calculate Felipe’s deduction for qualified business income. b. Calculate Felipe’s deduction for qualified business income if Felipe was an investment broker? Part a Part b Deduction for qualified business income $ $ (For all requirements, leave no answer blank. Enter zero if applicable.)
Felipe, a single taxpayer, is a technology consultant who operates as a sole proprietorship. Felipe’s net business income is $600,000 (net of the associated for AGI self-employment tax deduction), he pays wages of $100,000 to his employees, and he has $200,000 of qualified property (unadjusted basis). Felipe’s taxable income before the deduction for qualified business income is $500,000. Assume he has no
Required:
a. Calculate Felipe’s deduction for qualified business income.
b. Calculate Felipe’s deduction for qualified business income if Felipe was an investment broker?
| Part a | Part b | |
| Deduction for qualified business income | $ | $ |
(For all requirements, leave no answer blank. Enter zero if applicable.)
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
