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?
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?
Chapter4: Additional Income And The Qualified Business Income Deduction
Section: Chapter Questions
Problem 15P
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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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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT