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In 2019, Sam and Betty, each single, both generate sole proprietor income of $240.000. Sams income is generated from a whole

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Answer #1

Answer is option A

A. Sam can obtain a QBI deduction, but Betty cannot because of the taxable income and la practice is a specified service business.

Betty is not entitled to any deduction because a law firm is a specified service business and her taxable income exceeds $210,700 in case of single filers for the year 2019. Therefore, she is completely phased –out of any deduction. Sam is eligible to get 20% QBI deduction.

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