Harry Potter has working interest in oil and gas properties. Mr. Potter has gross income of...

 

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Harry Potter has working interest in oil and gas properties. Mr. Potter has gross income of $50,000, production axes of $5,000, lease operating expense of $25,000, intangible drilling costs of $10,000. The taxable income before depletion is $10,000. What is the net business income? Don't forget depletion and any limitations if applicable. Lyah's business, a non specified business has taxable income in the amount of $20,000 before the qualified business income deduction. If all the income is qualified business income, how much is her QBI deduction? Harry Potter has working interest in oil and gas properties. Mr. Potter has gross income of $50,000, production axes of $5,000, lease operating expense of $25,000, intangible drilling costs of $10,000. The taxable income before depletion is $10,000. What is the net business income? Don't forget depletion and any limitations if applicable. Lyah's business, a non specified business has taxable income in the amount of $20,000 before the qualified business income deduction. If all the income is qualified business income, how much is her QBI deduction?

Answer rating: 100% (QA)

To calculate the net business income for Harry Potter we need to consider the relevant expenses and ... View the full answer