Huy is single, age 40, and operates a sole proprietorship.In 2020, Huy's sole proprietorship generated income of $200,000, and the deductible business expenses totaled $120,000, for a net profit of $80,000. Huy also had other gross income of $40,000. Huy's QBI is $74,348, and his modified taxable income is $101,948.Huy's self-employment tax liability is $11,304.Huy takes the standard deduction as his itemized deductions total only $1,000.What is Huy's 2020 taxable income

Huy is single, age 40, and operates a sole proprietorship.In 2020, Huy's sole proprietorship generated income of $200,000, and the deductible business expenses totaled $120,000, for a net profit of $80,000. Huy also had other gross income of $40,000. Huy's QBI is $74,348, and his modified taxable income is $101,948.Huy's self-employment tax liability is $11,304.Huy takes the standard deduction as his itemized deductions total only $1,000.What is Huy's 2020 taxable income

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 46P

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