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Sheldon and Amy own a plumbing business as a sole proprietorship. The file a joint return and are cash basis, calendar-year taxpayers. For the year, they had the following information: Ordinary income from sole proprietorship $300,000 Taxable income $405,000 Modified taxable income $375,000 W-2 wages paid to employees $70.000 Qualified property basis SE tax deduction $50.000 $23,968 SE insurance deduction $20,000 What is their QBI deduction? $13,548 $35,000 $37,658 $51,206 OO OO

Sheldon and Amy own a plumbing business as a sole proprietorship. The file a joint return and are cash basis, calendar-year taxpayers. For the year, they had the following information: Ordinary income from sole proprietorship $300,000 Taxable income $405,000 Modified taxable income $375,000 W-2 wages paid to employees $70.000 Qualified property basis SE tax deduction $50.000 $23,968 SE insurance deduction $20,000 What is their QBI deduction? $13,548 $35,000 $37,658 $51,206 OO OO

SWFT Individual Income Taxes
SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter9: Deductions: Employee And Self-employed-related Expenses
Section: Chapter Questions
Problem 42P
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QUESTION 4 Sheldon and Amy own a plumbing business as a sole proprietorship. The file a joint return and are cash basis, calendar-year taxpayers. For the year, they had the following information: Ordinary income from sole proprietorship $300,000 Taxable income $405,000 Modified taxable income $375.000 W-2 wages paid to employees $70,000 Qualified property basis SE tax deduction SE insurance deduction $50,000 $23.968 $20,000 What is their QBI deduction? O $13.548 O $35.000 O $37,658 O $51,206
Transcribed Image Text:QUESTION 4 Sheldon and Amy own a plumbing business as a sole proprietorship. The file a joint return and are cash basis, calendar-year taxpayers. For the year, they had the following information: Ordinary income from sole proprietorship $300,000 Taxable income $405,000 Modified taxable income $375.000 W-2 wages paid to employees $70,000 Qualified property basis SE tax deduction SE insurance deduction $50,000 $23.968 $20,000 What is their QBI deduction? O $13.548 O $35.000 O $37,658 O $51,206
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