Margarita operates a sole proprietorship that earns $100,000 of qualified business income after deducting salaries of $300,000. The sole proprietorship is not a specified service business. She files a single tax return for 2019. Assume her taxable income before the QBI deduction is $175,000. Margarita's QBI deduction for 2019 is:
a.$20,000.
b.$-0-.
c.$60,000.
d.$80,000.
e.$35,000.
a) $ 20,000
Qbi deductionis lesser of
i) 20% QBI income = $ 100,000 * 20% = $ 20,000
II) 20% Of taxable income less capital gains = $ 175,000 * 20%= $ 35,000
As taxable income is more than $ 157,500, QBI deduction is limited to greater of :
i) $ 300,000 * 50% = $ 150,000
II) 25% * 300,000 + 2.5% * 0% = $ 75,000
Margarita operates a sole proprietorship that earns $100,000 of qualified business income after deducting salaries of...
30. Tygrett operates a sole proprietorship business that earns $100,000 qualified business income after deducting salaries of $300,000. She files a single return. What is her QBI deduction for 2019: A. $0 B. $20,000 C. $35,000 D. $60,000 E. $100,000
Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2019, the business pays $100,000 in W–2 wages, has $150,000 of qualified property, and generates $350,000 of qualified business income. Susan has no other items of income or loss and will take the standard deduction. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's qualified business income deduction?
Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2019, the business pays $60,000 of W–2 wages and generates $200,000 of qualified business income. Susan also has a part-time job earning wages of $11,000 and receives $3,200 of interest income. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's tentative QBI based on the W–2 Wages/Capital Investment Limit? $ Determine Susan's allowable...
Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2019, the business pays $60,000 of W–2 wages and reports qualified business income of $200,000. Susan also has a part-time job earning wages of $11,000 and receives $3,200 of interest income. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's tentative QBI based on the W–2 Wages/Capital Investment Limit? $ ______ Determine Susan's...
Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2019, the business pays $60,000 of W–2 wages and reports qualified business income of $200,000. Susan also has a part-time job earning wages of $11,000 and receives $3,200 of interest income. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's tentative QBI based on the W–2 Wages/Capital Investment Limit? $ Determine Susan's allowable...
Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2018, the business pays $100,000 in W–2 wages, has $150,000 of qualified property, and has $150,000 in net income (all of which is qualified business income). Susan has no other items of income or loss and will take the standard deduction. What is Susan's QBI deduction?
It is not $50,000. Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2019, the business pays $100,000 in W-2 wages, holds $150,000 of qualified property, and generates $150,000 of qualified business income. Susan has no other items of income or loss and will take the standard deduction. Assume the QBI amount is net of the self- employment tax deduction. What is Susan's QBI deduction?
Jacquise, a single taxpayer, operates a sole proprietorship that manufactures dog and cat toys. For 2020, the sole proprietorship has QBI of $245,000. Included in the QBI amount are W2 wages paid of $87,500 and the sole proprietorship has $1,150,000 of qualified property (i.e., for UB purposes). Lastly, Jacquise's taxable income before the Section 199A deduction is $256,000. What is Jacquise's 2020 Section 199A deduction?
Sam has $160,000 of QBI from her sole proprietorship which is not a “qualified services” business. Sam's proprietorship paid $30,000 in W-2 wages and has $500,000 of qualified property. She also earned $22,900 of interest income during the year. What is her QBI deduction for the current year? O $15,000. O $20,000. $29,600. O $32,000.
Thad, a single taxpayer, reports taxable income before the QBI deduction of $185,000. Thad, a CPA, operates an accounting practice as a single member LLC (which he reports as a sole proprietorship). During the tax year, his proprietorship generates qualified business income of $148,000 after deducting self-employment taxes, W–2 wages of $111,000, and $11,600 of qualified property. Assume the QBI amount is net of the self-employment tax deduction. What is Thad's QBI deduction? Please provide solution and answer