Greg is a single taxpayer with taxable income of $218,000. Although he is not involved in...
Greg is a single taxpayer with taxable income of $218,000. Although he is not involved in a specified service trade or business, he has qualified business income. How will Greg compute his business income deduction?
He will multiply the amount of his qualified business income by 20%.
He will multiply the amount of his taxable income by 20%.
His computation will involve several steps because his deduction may be limited by the amount of Form W-2 wages paid and the UBIA of property held by the trade or business.
None of these choices apply because Greg is not entitled to the deduction.
Homework Answers
Answer:
The correct answer for the given statement is (C). His computation will involve several steps because his deduction may be limited by the amount of Form W-2 wages paid and the UBIA of property held by the trade or business
Note:
You must calculate your limitation if your taxable income is more than $315,000 or $157,500, and if you have ownership interest in a qualified trade or business that isn’t a specified service trade or business.
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Greg is a single taxpayer with taxable income of $218,000.
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