Scott Taxpayer is an Attorney who operates his own law firm. As a single-member LLC, Scott reports his firm operations as a sole proprietor. Scott has QBI from his law firm of $450,000, he reports paying W–2 wages of $140,000, and the unadjusted basis of property used in the LLC is $350,000. Scott is married and will file a joint tax return with his spouse.  Their taxable income before the QBI deduction is $425,000, including $20,000 of capital gains.  Determine the taxpayer’s QBI deduction for 202

SWFT Corp Partner Estates Trusts
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ISBN:9780357161548
Author:Raabe
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Chapter2: The Deduction For ­qualified Business Income For Pass-through Entities
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Problem 2.  Scott Taxpayer is an Attorney who operates his own law firm. As a single-member LLC, Scott reports his firm operations as a sole proprietor. Scott has QBI from his law firm of $450,000, he reports paying W–2 wages of $140,000, and the unadjusted basis of property used in the LLC is $350,000. Scott is married and will file a joint tax return with his spouse.  Their taxable income before the QBI deduction is $425,000, including $20,000 of capital gains.  Determine the taxpayer’s QBI deduction for 2020

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