Tammy has $200,000 of QBI from her neighborhood clothing store (a sole proprietorship). Her proprietorship paid $30,000 in W-2 wages and has $20,000 of qualified property. Tammy's spouse earned $50,000 of wages as an employee, and the couple earned $20,000 of interest income during the year. They will be filing jointly and take the standard deduction of $24,800. What is their QBI deduction for 2020? а. $-0-. Ob. $40,000. с. $54,000. d. $50,000.

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter9: Deductions: Employee And Self- Employed-related Expenses
Section: Chapter Questions
Problem 41P: Shelly has 200,000 of QBI from her local jewelry store (a sole proprietorship). Shellys...
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Tammy has $200,000 of QBI from her neighborhood clothing store
(a sole proprietorship). Her proprietorship paid $30,000 in W-2
wages and has $20,000 of qualified property. Tammy's spouse
earned $50,000 of wages as an employee, and the couple earned
$20,000 of interest income during the year. They will be filing
jointly and take the standard deduction of $24,800.
What is their QBI deduction for 2020?
a. $-0-.
b. $40,000.
C. $54,000.
d. $50,000.
Transcribed Image Text:Tammy has $200,000 of QBI from her neighborhood clothing store (a sole proprietorship). Her proprietorship paid $30,000 in W-2 wages and has $20,000 of qualified property. Tammy's spouse earned $50,000 of wages as an employee, and the couple earned $20,000 of interest income during the year. They will be filing jointly and take the standard deduction of $24,800. What is their QBI deduction for 2020? a. $-0-. b. $40,000. C. $54,000. d. $50,000.
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