Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a “specified services” business. In 2020, the business pays $100,000 in W–2 wages, has $150,000 of qualified property, and has $350,000 in net income (all of which is qualified business income). Susan has no other items of income or loss and will take the standard deduction. Susan’s business reports net income of $150,000 (all of which is qualified business income). What is Susan’s QBI deduction?

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.