Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is...

 

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Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2023, the business pays $100,000 in W-2 wages, has $150,000 of qualified property, and generates $150,000 of qualified business income. Kyra has no other items of income, deduction, or loss and will take the standard deduction of $13,850. Assume the QBI amount is net of the self-employment tax deduction. What is Kyra's QBI deduction? 50,000 X Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2023, the business pays $100,000 in W-2 wages, has $150,000 of qualified property, and generates $150,000 of qualified business income. Kyra has no other items of income, deduction, or loss and will take the standard deduction of $13,850. Assume the QBI amount is net of the self-employment tax deduction. What is Kyra's QBI deduction? 50,000 X

Answer rating: 100% (QA)

Based on the information provided Kyras Qualified Business Income QBI deduction can be calculated as ... View the full answer