Sookie, a single taxpayer has business net income totaling $ 200,000 from owning 100% of a S Corporation that operates a retail liquor store. Sookie’s taxable income this year (before the § 199A deduction) is $475,000. The business had $ 1,000,000 of qualified business property and paid $ 30,000 in wages. Which of the following statements is correct? a. Sookie is not eligible for the qualified business income deduction since it is not a manufacturing business. b. Sookie may claim a qualified business income deduction of $40,000. c. Sookie may claim a qualified business income deduction of $15,000. d. Sookie may claim a qualified business income deduction of $32,500. e. Sookie may claim a qualified business income deduction of
Sookie, a single taxpayer has business net income totaling $
200,000 from owning 100% of a S Corporation that operates a
retail liquor store. Sookie’s taxable income this year (before the
§ 199A deduction) is $475,000. The business had $ 1,000,000 of
qualified business property and paid $ 30,000 in wages. Which
of the following statements is correct?
a. Sookie is not eligible for the qualified business income
deduction since it is not a manufacturing business.
b. Sookie may claim a qualified business income deduction of
$40,000.
c. Sookie may claim a qualified business income deduction of
$15,000.
d. Sookie may claim a qualified business income deduction of
$32,500.
e. Sookie may claim a qualified business income deduction of
$25,000
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