1 Your Client took a loss of $18,000 on his 2022 Schedule C,resulting in a negative Qualified BusinessIncome of $18,000 on the 2022 tax return. For 2023,your Client has a net profit of $25,679,and aQualified Business Income of $18,952(not counting any carryover of negative QBI from last year to thisyear).The Client's taxable Income is $12,098.How much Qualified Business Income Deduction will yourclient receive for 2023(assuming that no other factors affect the amount?

The Qualified Business Income (QBI) deduction is calculated as the lesser of two amounts:20% of the…

Answered: year). The Client's taxable Income is…

year). The Client's taxable Income is $12,098.How much Qualified Business Income Deduction will your client receive for 2023(assuming that no other factors affect the amount?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 18CE

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John Wick operates books stores and renders services as a professional broker. In 2018, his gross sales amounted to P800,000. In addition to that, he received P300,000 from his services as a broker. Assume that he failed to signify his intention to be taxed at 8% income tax rate on gross sales in his initial Quarterly Income Tax Return, and he incurred the cost of sales and operating expenses amounting to P600,000 and P200,000, respectively. What is the income tax due to John Wick in his quarterly income tax return?