Campbell, a single taxpayer, has $110,000 of profits from her accounting business that she operates as a sole proprietorship. She has no employees, no qualified property, no capital gains and the deductible portion of self-employment tax was $10,000.  Campbell also had $120,000 of taxable income before the deduction for qualified business income. How much is Campbell's deduction for qualified business income? A) $100000 B) $20000 C) $10000 D) $24000

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter4: Additional Income And The Qualified Business Income Deduction
Section: Chapter Questions
Problem 15P
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Campbell, a single taxpayer, has $110,000 of profits from her accounting business that she operates as a sole proprietorship. She has no employees, no qualified property, no capital gains and the deductible portion of self-employment tax was $10,000.  Campbell also had $120,000 of taxable income before the deduction for qualified business income. How much is Campbell's deduction for qualified business income?


A) $100000 B) $20000 C) $10000 D) $24000

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