ZuoTi.Pro
Question

1. Your client Rachel is an accountant who practices as a sole proprietor. This year, Rachel...

1. Your client Rachel is an accountant who practices as a sole proprietor. This year, Rachel had net business income of $270,000 from her practice. Assume that Rachel pays $50,000 wages to her employees, she has $20,000 of property (unadjusted basis of equipment she purchased last year), she has no capital gains, and her taxable income before the deduction for qualified business income is $225,000. Calculate your client Rachel's deduction for qualified business income. Please show all workings :)

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

$ 0 Since Racheal has taxable inome of 22 5000 Betorethe dedcluutin or qvalfied business inome) amd above 207,500, her accoun

0 0
Add a comment
Know the answer?
Add Answer to:
1. Your client Rachel is an accountant who practices as a sole proprietor. This year, Rachel...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 6. Your client Rachel Robert is an engineer who practices as a sole proprietor. This year, Rachel had net business incom...

    6. Your client Rachel Robert is an engineer who practices as a sole proprietor. This year, Rachel had net business income of $500,000 from her business. Assume that Rachel pays $20,000 wages to her employees, she has $500,000 of property (unadjusted basis of equipment she purchased last year), she has no capital gains, and her taxable income before the deduction for qualified business income is $380,000. Calculate your client, Rachel’s deduction for qualified business income. Please show all workings.

  • Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan...

    Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice. Assume that Roquan pays $40,000 wages to his employees, he has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000. (Leave no answer blank. Enter zero if applicable.) Required: a. Calculate Roquan's...

  • Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan...

    Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000. (Leave no answer blank....

  • #7 In 2019, Sam and Betty, each single, both generate sole proprietor income of $240,000. Sam's...

    #7 In 2019, Sam and Betty, each single, both generate sole proprietor income of $240,000. Sam's income is generated from a wholesale business whereas Betty's is earned from her law practice. Neither has any employees or qualified assets. Both claim the standard deduction and have other income equal to the standard deduction amount. a.Both Sam and Betty will have a QBI deduction of $48,000. b.Sam can obtain a QBI deduction, but Betty cannot because of the taxable income level and...

  • In 2019, Sam and Betty, each single, both generate sole proprietor income of $240.000. Sam's income...

    In 2019, Sam and Betty, each single, both generate sole proprietor income of $240.000. Sam's income is generated from a wholesale business whereas Betty's is eamed from her law practice. Neither has any employees or qualified assets. Both claim the standard deduction and have other income equal to the standard deduction amount a. Sam can obtain a Qat deduction, but Betty cannot because of the taxable income level and law practice is a specified service business b. Both Sam and...

  • Ella, a single taxpayer, operates a gardening shop as a sole proprietor. The business has 3...

    Ella, a single taxpayer, operates a gardening shop as a sole proprietor. The business has 3 employees who are paid a total of $110,000 during 2020. Assume that the business has no significant assets. During 2020, the business generates $156,000 of income and Ella’s taxable income before the QBI deduction is $162,000 What is Ella’s qualified business income deduction? What is Ella’s qualified business income deduction if the facts are the same except that the business income is $320,000 and...

  • Mary, a single taxpayer, operates a printing business as a sole proprietor. The business has two...

    Mary, a single taxpayer, operates a printing business as a sole proprietor. The business has two employees who are paid a total of $85,000 during 2020. Assume that the business has no significant assets. During 2020, the business generates $60,000 of income, and her taxable income before the QBI deduction is $75,000. What is Mary's deduction for QBI? $42,500 $12,000 $15,000 13,750 $0

  • Jane, a single taxpayer, operates a farm as a sole proprietor. The farm has two employees...

    Jane, a single taxpayer, operates a farm as a sole proprietor. The farm has two employees who are paid a total of $40,000 during 2018. Assume that the business has no significant assets. During 2020, the business generates $130,000 of income, and her taxable income before the QBI deduction is $175,000. What is Jane's deduction for QBI? $25,298 $24,596 $20,000 $26,000 $18,596

  • Jen, an accountant, is a sole proprietor working in Queens, NY. Jen decides that she wants...

    Jen, an accountant, is a sole proprietor working in Queens, NY. Jen decides that she wants to incorporate her business and that such business would be taxed as a C-corporation. When Jen incorporates, she contributes various property and cash including her accounts receivable from her sole proprietor business. Several days after incorporating, Jen decides to bring another accountant, Sam, into her team and 8 entices him with a shareholder interest in the newly incorporated company. Which of the following statements...

  • Campbell, a single taxpayer, has $95,000 of profits from her general store, which she operates as...

    Campbell, a single taxpayer, has $95,000 of profits from her general store, which she operates as a sole proprietorship. She has no employees, $40,000 of qualified property, and $50,000 of taxable income before the deduction for qualified business income. How much is Campbell’s deduction for qualified business income? $10,000. $95,000. $0. $19,000. $8,000.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT