What is Jennifer's qualified business income deduction?
Chapter15: Taxing Business Income
Section: Chapter Questions
Problem 34P
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![Problem 15-36 (LO. 3, 4)
Jennifer is a CPA and a single taxpayer using the standard deduction. In 2023, her CPA practice generates qualified business income of
$163,850 and she has no other items of income, deduction, or loss. Jennifer's taxable income before the QBI deduction is $150,000
($163,850 - $13,850 standard deduction). Jennifer employs an administrative assistant in her practice and pays him $75,000 in wages.
The unadjusted basis of depreciable assets employed in the practice totals $30,000.
If amount is zero, enter "0". Assume the QBI amount is net of the self-employment tax deduction.
a. What is Jennifer's qualified business income deduction?
b. Determine Jennifer's qualified business income deduction if her CPA practice generates qualified business income of $273,800.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5de3c580-7ec2-41cd-9c1b-f37818ad875d%2F2f720921-c753-47bf-8041-cd4f5f7ccd77%2F9fx327a_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 15-36 (LO. 3, 4)
Jennifer is a CPA and a single taxpayer using the standard deduction. In 2023, her CPA practice generates qualified business income of
$163,850 and she has no other items of income, deduction, or loss. Jennifer's taxable income before the QBI deduction is $150,000
($163,850 - $13,850 standard deduction). Jennifer employs an administrative assistant in her practice and pays him $75,000 in wages.
The unadjusted basis of depreciable assets employed in the practice totals $30,000.
If amount is zero, enter "0". Assume the QBI amount is net of the self-employment tax deduction.
a. What is Jennifer's qualified business income deduction?
b. Determine Jennifer's qualified business income deduction if her CPA practice generates qualified business income of $273,800.
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