Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 in wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $300,000. Calculate Roquan’s deduction for qualified business income. Please note his taxable income is greater than $157,500 so the W-2 limitations DO apply.
Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 in wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $300,000. Calculate Roquan’s deduction for qualified business income. Please note his taxable income is greater than $157,500 so the W-2 limitations DO apply.
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 20P: Sheila, a single taxpayer, is a retired computer executive with a taxable income of 100,000 in the...
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Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 in wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no
- Calculate Roquan’s deduction for qualified business income. Please note his taxable income is greater than $157,500 so the W-2 limitations DO apply.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT