Shelly has $200,000 of QBI from her local jewelry store (a sole proprietorship). Shelly's proprietorship paid $30,000 in W-2 wages and has $20,000 of qualified property. Shelly's spouse earned $74,800 of wages as an employee, they earned $20,000 of interest income during the year, and they will be filing jointly and using the standard deduction. Assume the QBI amount is net of the self-employment tax deduction. What is their QBI deduction for 2020?

Shelly has $200,000 of QBI from her local jewelry store (a sole proprietorship). Shelly's proprietorship paid $30,000 in W-2 wages and has $20,000 of qualified property. Shelly's spouse earned $74,800 of wages as an employee, they earned $20,000 of interest income during the year, and they will be filing jointly and using the standard deduction. Assume the QBI amount is net of the self-employment tax deduction. What is their QBI deduction for 2020?

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter9: Deductions: Employee And Self- Employed-related Expenses

Section: Chapter Questions

Problem 41P: Shelly has 200,000 of QBI from her local jewelry store (a sole proprietorship). Shellys...

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A start-up business requires high investment along with its objectives, vision, mission, and business plan for the growth of the business. Investment is highly required for funding assets, working capital, and other operations of the business. An investment fund can be raised from various sources. Investment sources assist businesses to achieve their financial goals and support businesses to sustain and grow. Investors are willing to invest in businesses if adequate returns are entitled from the investments. Portfolio methods and risk evaluating measurements are utilized by investors to identify the best investment option.

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Problem 2-24 (LO. 3, 4)
Shelly has $200,000 of QBI from her local jewelry store (a sole proprietorship).
Shelly's proprietorship paid $30,000 in W-2 wages and has $20,000 of qualified
property. Shelly's spouse earned $74,800 of wages as an employee, they earned
$20,000 of interest income during the year, and they will be filing jointly and
using the standard deduction.
Assume the QBI amount is net of the self-employment tax deduction.
What is their QBI deduction for 2020?

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