JC recently graduated from veterinary school and opened their own professional practice. This year, their net profit was $31,600. Assume JC does not qualify for the QBI deduction. Required: a. Compute JC's after-tax income from their practice assuming their self-employment tax is $4,465, and their marginal income tax rate is 22 percent.
JC recently graduated from veterinary school and opened their own professional practice. This year, their net profit was $31,600. Assume JC does not qualify for the QBI deduction. Required: a. Compute JC's after-tax income from their practice assuming their self-employment tax is $4,465, and their marginal income tax rate is 22 percent.
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 13DQ
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Transcribed Image Text:JC recently graduated from veterinary school and opened their own professional practice. This year, their net profit was $31,600.
Assume JC does not qualify for the QBI deduction.
Required:
a. Compute JC's after-tax income from their practice assuming their self-employment tax is $4,465, and their marginal income tax rate
is 22 percent.
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