nas taxable income before the QE h he reports as a sole proprietors $113,700, and $11,200 of qualif at is net of the self-employme
nas taxable income before the QE h he reports as a sole proprietors $113,700, and $11,200 of qualif at is net of the self-employme
Chapter9: Deductions: Employee And Self-employed-related Expenses
Section: Chapter Questions
Problem 43P
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Transcribed Image Text:Exercise 15-19 (Algorithmic) (LO. 3, 4)
Thad, a single taxpayer, has taxable income before the QBI deduction of $189,500. Thad, a CPA, operates an accounting practice as a
single member LLC (which he reports as a sole proprietorship). During 2021, his proprietorship generates qualified business income of
$151,600, W-2 wages of $113,700, and $11,200 of qualified property.
Assume the QBI amount is net of the self-employment tax deduction. If required, round any division to two decimal places
and use that rounded amount in any future computations. Round your final answer to the nearest dollar.
What is Thad's qualified business income deduction?
19,253 X
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