Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In2022, the business pays $60,000 of W-2 wages, has $150,000 of qualified property, and generates $200,000 of qualified businessincome. Kyra also has a part-time job earning wages of $11,500 and receives $3,450 of interest income. Her standard deduction is$12,950.Assume the QBI amount is net of the self-employment tax deduction.What is Kyra's tentative QBI based on the W-2 Wages/Capital Investment Limit?$30,000Determine Kyra's allowable QBI deduction.$X

Qualified Business Income:Qualified business income is the income from qualified trade or business…

Answered: What is Kyra's tentative QBI based on…

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What is Kyra's tentative QBI based on the W-2 Wages/Capital Investment Limit?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In
2022, the business pays $60,000 of W-2 wages, has $150,000 of qualified property, and generates $200,000 of qualified business
income. Kyra also has a part-time job earning wages of $11,500 and receives $3,450 of interest income. Her standard deduction is
$12,950.
Assume the QBI amount is net of the self-employment tax deduction.
What is Kyra's tentative QBI based on the W-2 Wages/Capital Investment Limit?
$
30,000
Determine Kyra's allowable QBI deduction.
$
X

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