Your client Parrish Hill has come to you because he is thinking about quitting his current job and starting his own sole proprietorship architecture practice. He knows there are different tax provisions that apply to sole proprietors, but he does not know the details so he is coming to you for help. Parrish would like you to give him an estimate of how much business sales (revenue) he would need to make to have the same net personal cash flow that he has with his current job this year. (Assume Parrish will receive all revenues in cash during the tax year.) Parrish explains that:  His current salary is $80,000.  His current employer pays the full cost of his health insurance. Parrish absolutely wants to have health insurance coverage even if he is self-employed. He has investigated and found that the premiums on such a plan would cost him $10,000.  He expects the deductible expenses (all cash expenses) at his business would be $30,000. o Assume Parrish would keep all the net profit after paying for those expenses (i.e. for our purposes here he won’t reinvest that cash back in the business).  He is unmarried with no dependents.  He lives in Nevada (in a rented apartment), so he does not pay state income tax.  He has heard about this new QBI deduction, but he does not know how to calculate it or whether it applies to sole proprietorships. [You can assume that Parrish’s QBI would

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Ans QBI deduction is a deduction for self employed persons and business owners who are running busin... View the full answer