Keiji Jones is the owner of a small retail business operated as a sole proprietorship. During 2021,
Question:
Keiji Jones is the owner of a small retail business operated as a sole proprietorship. During 2021, his business recorded the following items of income and expense:
a. Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in Keiji’s 2021 Form 1040.
b. Compute self-employment tax payable on the earnings of Keiji’s sole proprietorship by completing a 2021 Schedule SE, Form 1040.
c. Assume that Keiji’s business is not a service business, and that it has $155,000 unadjusted basis in tangible depreciable property. Calculate Keiji’s 2021 QBI deduction, before any overall taxable income limitation.
Step by Step Answer:
Principles Of Taxation For Business And Investment Planning 2023
ISBN: 9781264229741
26th Edition
Authors: Sally Jones, Shelley Rhoades-Catanach, Sandra Callaghan, Thomas Kubick