$2.$ Husband $($H$)$ and Wife $($W$)$ are both lawyers and practice law together. In each of the following alternatives, please determine if they are entitled to QBD for $2022$ and, if so$,$ in what amount.

a$.$ In $2022$ they have net income from their practice of $$240,000$ and their joint taxable income for the year is $$315,000.$ The expenses they incurred in their practice include $$80,000$ of W$-2$ wages.

b$.$ How would your answer to a$.$ change if their taxable income were $$700,000$ for $2022?$

c$.$ Do only if specifically assigned. How would your answer to a$.$ change if their taxable income were $$340,000$ in $2022?$

Answer rating: 100% (QA)

To determine if Husband H and Wife W are entitled to Qualified Business Deduction QBD for 2022 and the amount we need to consider the applicable tax l... View the full answer