Exercise $15-21($Algorithmic$)($LO$.3,4)$

In $2022,$ Henry Jones $($Social Security number $123-45-6789)$ works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In $2022,$ Henry's qualified business income from driving is $$87,400.$ Assume Henry takes the standard deduction of $$12,950.$

Click here to access the $2022$ individual tax rate schedule to use for this problem.

Question Content Area

Assume the QBI amount is net of the self$-$employment tax deduction.

$2$ 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 $-0-$dots

$5$ 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 $-0-$eBook

$\backslash$table$[[$Form $8995,\backslash$table$[[$Qualified Business Income Deduction$],[$Simplified Computation$]],$OMB No$.1545-2294],[2022],[$Department of the Treasury,$\backslash$table$[[$Attach to your tax return.$],[$Go to www$.$irs.gov$/$Form$8995$ for instructions and the latest information.$]],$Attachment$],[$Internal Revenue Service,Sequence No$.55],[\{$

$\backslash$table$[[$Name$($s$)$ shown on return$],[$Henry Jones$]]\},\backslash$table$[[$Your taxpayer identification number$],[$q$,123-45-6789]]],[]]$

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

$\backslash$table$[[1,($a$)$ Trade, business, or aggregation name,$\backslash$table$[[($b$)$ Taxpayer$],[$identification number$]],\backslash$table$[[($c$)$ Qualified business$],[$income or $($loss$)]]],[$i$,$Henry Jones Transportation,$123-45-6789,$x$],[$ii$,,,,],[$iii$,,,,],[$iv$,,,,],[$v$,,,,],[2,$Total qualified business income or $($loss$).$ Combine lines $1$i through $1$v$,$ column $($c$).,2,,],[3,$Qualified business net $($loss$)$ carryforward from the prior year $.,3,(,],[4,$Total qualified business income. Combine lines $2$ and $3.$ If zero or less, enter $-0-$dots,$4,87,400\backslash \backslash$vv$,]]$

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