Ben owns and operates as a sole proprietorship, a machine repair shop that generates a profit...
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Ben owns and operates as a sole proprietorship, a machine repair shop that generates a profit of about $150,000 annually. The business pays wages of about $50,000 annually. The building and most of the equipment is leased so there is no qualified property. Ben files as single and claims the standard deduction. He has a large unrealized gain in bitcoin that he acquired in 2014 and is wondering when he should sell it and whether he should sell it all in one year or over a few years. Advise Ben as to how the sale of the bitcoin and its resulting capital gain can affect his QBI deduction. Ben owns and operates as a sole proprietorship, a machine repair shop that generates a profit of about $150,000 annually. The business pays wages of about $50,000 annually. The building and most of the equipment is leased so there is no qualified property. Ben files as single and claims the standard deduction. He has a large unrealized gain in bitcoin that he acquired in 2014 and is wondering when he should sell it and whether he should sell it all in one year or over a few years. Advise Ben as to how the sale of the bitcoin and its resulting capital gain can affect his QBI deduction.
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Answer rating: 100% (QA)
QBI Qualified Bussiness income Deduction Many owners of sole proprietorships partnershi... View the full answer
Related Book For
Taxation for Decision Makers 2014
ISBN: 9781118654545
6th edition
Authors: Shirley Dennis Escoffier, Karen Fortin
Posted Date:
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