Jennifer is a CPA and a single taxpayer using the standard deduction. In 2022, her CPA practice
Question:
Jennifer is a CPA and a single taxpayer using the standard deduction. In 2022, her CPA practice generates qualified business income of $162,950 and she has no other items of income, deduction, or loss. Jennifer’s taxable income before the QBI deduction is $150,000 ($162,950 – $12,950 standard deduction). Jennifer employs an administrative assistant in her practice and pays him $75,000 in wages. The unadjusted basis of depreciable assets employed in the practice totals $30,000.
a. What is Jennifer’s qualified business income deduction?
b. Determine Jennifer’s qualified business income deduction if her CPA practice generates qualified business income of $273,800.
Step by Step Answer:
South Western Federal Taxation 2023 Comprehensive Volume
ISBN: 9780357719688
46th Edition
Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young