Question

Frank owns a dental practice. Frank's gross receipts are $332,423 during the year. He is on the cash basis and has the following business expenses for the year: Professional Dues 500 Dental Supplies 15,762 Malpractice Insurance | 3,200 Advertising 2,000 Wages 120,000 Payroll Taxes 9,180 Utilities 6,000 Office Rent 24,000 Insurance 1,600 Contribution for Presidential Campaign 3,000 Professional Journals 300 Trip for Continuing Education* 3,800

*Both Frank and Sally(is not part of the business) went to Hawaii on a trip for a 2 day seminar. 2 days were travel, 2 days and 2 nights were for the seminar. The other 3 days of the trip was for pleasure. The following was the breakdown of expenses: primary business and is domestic travel so no allocation

• Course                                    $600
• Airfare (for both)                    $1,400
• Hotel ($100/night)                 $700
• Food ($50/person/day)          $700
• Scuba package                       $300
• Total                                        $3,800

Note: The airfare listed was an estimate of the FMV of the tickets for both Frank and Sally. Sally was able to get free tickets as a part of her employment with American Airlines.

What is the net income?

What is the qualified business income deduction?