Jana is a single taxpayer who will take the $12,950 standard deduction in 2022. Jana is the owner of Put Your Best Foot Forward, a boutique shoe store in Elite Suburb, II. Jana operates her store as an S corporation (she is the sole shareholder). In 2022 her qualified business income from Put Your Best Foot Forward was $400,000. She paid $150,000 in w-2 wages (note: these wages are included in the $400,000 of qualified business income). In addition, the unadjusted basis in assets was $1,600,000 (this amount includes the building in which
Jana is a single taxpayer who will take the $12,950 standard deduction in 2022. Jana is the owner of Put Your Best Foot Forward, a boutique shoe store in Elite Suburb, II. Jana operates her store as an S corporation (she is the sole shareholder). In 2022 her qualified business income from Put Your Best Foot Forward was $400,000. She paid $150,000 in w-2 wages (note: these wages are included in the $400,000 of qualified business income). In addition, the unadjusted basis in assets was $1,600,000 (this amount includes the building in which
Chapter15: Taxing Business Income
Section: Chapter Questions
Problem 34P
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Transcribed Image Text:Jana is a single taxpayer who will take the
$12,950 standard deduction in 2022. Jana is
the owner of Put Your Best Foot Forward, a
boutique shoe store in Elite Suburb, Il. Jana
operates her store as an S corporation (she
is the sole shareholder). In 2022 her
qualified business income from Put Your
Best Foot Forward was $400,000. She paid
$150,000 in w-2 wages (note: these wages
are included in the $400,000 of qualified
business income). In addition, the
unadjusted basis in assets was $1,600,000
(this amount includes the building in which
the store is located as well as the store
fixtures). Jana had interes
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