Ch $8$ Tax Return Problem $$ Individual $($Form $1040)$Note$.$ You can claim the qualified business income deduction only if you have qualified business income from a qualified trade or business, real

estate investment trust dividends, publicly traded partnership income, or a domestic production activities deduction passed through from an

agricultural or horticultural cooperative. See instructions.

Use this form if your taxable income, before your qualified business income deduction, is at or below $$170,050($ $$340,100$ if married filing

jointly$),$ and you aren't a patron of an agricultural or horticultural cooperative.

$2$ Total qualified business income or $($loss$).$ Combine lines $1$i through $1v,$ column $($c$).$

$3$ Qualified business net $($loss$)$ carryforward from the prior year

$4$ Total qualified business income. Combine lines $2$ and $3.$ If zero or less, enter $-0-$

$5$ Qualified business income component. Multiply line $4$ by $20\%(0\mathrm{.}20)..................................$

$6$ Qualified REIT dividends and publicly traded partnership $($PTP$)$ income or $($loss$)$

$($see instructions$)$

$7$ Qualified REIT dividends and qualified PTP $($loss$)$ carryforward from the prior year.

$8$ Total qualified REIT dividends and PTP income. Combine lines $6$ and $7.$ If zero or

less, enter $-0-$

$9$ REIT and PTP component. Multiply line $8$ by $20\%(0\mathrm{.}20)$

$10$ Qualified business income deduction before the income limitation$.$ Add lines $5$ and $9$

$11$ Taxable income before qualified business income deduction $($see instructions$)...$

$12$ Net capital gain $($see instructions$)$

$13$ Subtract line $12$ from line $11.$ If zero or less, enter $-0-$

$14$ Income limitation$.$ Multiply line $13$ by $20\%(0\mathrm{.}20)$

$15$ Qualified business income deduction. Enter the smaller of line $10$ or line $14.$ Also enter this amount on the

applicable line of your return $($see instructions$)................................................$

$16$ Total qualified business $($loss$)$ carryforward. Combine lines $2$ and $3.$ If greater than zero, enter $-0-......$

$17$ Total qualified REIT dividends and PTP $($loss$)$ carryforward. Combine lines $6$ and $7.$ If greater than zero,

enter $-0-$

Form $8995(2022)$

Janice Morgan, age $24,$ is single and has no dependents. She is a freelance writer. In January $2022,$ Janice

opened her own office located at $2751$ Waldham Road, Pleasant Hill, NM $88135.$ She called her business

Writers Anonymous. Janice is a cash basis taxpayer. She lives at $132$ Stone Avenue, Pleasant Hill, NM

$88135.$ Her Social Security number is $123-45-6782.$ Janice's parents continue to provide health insurance

for her under their policy. Janice did not engage in any virtual currency transactions during the year and

wants to contribute to the Presidential Election Campaign Fund.

During $2022,$ Janice reported the following income and expense items connected with her business.

Income from sale of articles $$95,000$

Rent $16,500$

Utilities $7,900$

Supplies $1,800$

Insurance $5,000$

Travel $($including restaurant meals of $$600)2,900$

Janice purchased and placed in service the following fixed assets for her business. Janice wants to elect

immediate expensing under $179,$ if possible.

$$ Furniture and fixtures $($new$)$ costing $$21,000$ on January $10.$

$$ Computer equipment $($new$)$ costing $$12,400$ on July $28.$

Janice's itemized deductions include:

State income tax $$2,950$

Home mortgage interest paid to First National Bank $8,000$

Property taxes on home $2,500$

Charitable contribution to her alma mater, State College $1,200$

Janice did not keep a record of the sales tax she paid. The amount allowed by the sales tax table is $$437.$

Janice reports interest income of $$4,000$ on certificates of deposit at Second National Bank. She made

estimated tax payments of $$5,000$ for $2022.$