What is Thad's qualified business income deduction?
Chapter2: The Deduction For qualified Business Income For Pass-through Entities
Section: Chapter Questions
Problem 18CE
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Exercise 15-17 (LO. 3, 4)
Thad, a single taxpayer, has taxable income before the QBI deduction of $193,300. Thad, a CPA, operates an accounting practice as a single member LLC (which he reports as a sole proprietorship). During 2020, his proprietorship generates qualified business income of $150,000, W–2 wages of $125,000, and $10,000 of qualified property.
Assume the QBI amount is net of the self-employment tax deduction.
What is Thad's qualified business income deduction?
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