Jana is a single taxpayer who will take the $12,950 standard deduction in 2022. Jana is the owner of Put Your Best Foot Forward, a boutique shoe store in Elite Suburb, Il. Jana operates her store as an S corporation (she is the sole shareholder). In 2022 her qualified business income from Put Your Best Foot Forward was $400,000. She paid $150,000 in w-2 wages (note: these wages are included in the $400,000 of qualified business income). In addition, the unadjusted basis in assets was $1,600,000 (this amount includes the building in which the store is located as well as the store fixtures). Jana had an interest income of $25,000 (in addition to her earnings from her store). Determine Jana’s taxable income in 2022.

Assume that instead of owning and operating Put Your Best Foot Forward, Jana was a dentist earning $400,000. She paid w-2 wages of $150,000 and the unadjusted basis of her office furnishings and equipment was $1,600,000. She will continue to take the $12,950 standard deduction rather than itemize. Under this scenario, what is Jana’s taxable income in 2022?

Answer rating: 100% (QA)

1 Janas taxable income in 2022 would be 287050 2 Janas taxable income in 202... View the full answer