In each of the following cases, determine if the Taxpayer is entitled to a Qualified Business Deduction
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- The plumber works for herself and has net earnings from her business of $100K. She has no employees.
- Suppose a Plumber goes to work for an unrelated plumbing company and is paid a salary of $100K.
- Lawyer, who is single, works as a solo practitioner and has net earnings of $150K. She does not have a staff nor has she made a significant capital investment in her practice.
- The doctor works as a solo practitioner and has net earnings of $500K. In addition to her other expenses, the Doctor pays her staff wages of $150K.
- The architect works for herself and
- has net earnings of $500K for the year. In addition to her other expenses, the Architect pays her staff wages of $150K. She has not yet invested in any “qualified property.”
- The engineer is single and works for herself. This year she has net earnings of $182,500. Engineer paid her assistant $50,000 and has not invested in any qualified property.
- Real Estate Mogul earns a net $5 million in rental income from his various properties. In addition to his other expenses. Mogul pays his staff wages of $500K. Mogul’s unadjusted basis in his rental properties is $50 million.
Related Book For
Business Statistics a decision making approach
ISBN: 978-0133021844
9th edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
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