Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not
Fantastic news! We've Found the answer you've been seeking!
Question:
Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2023,
the business pays $60,000 of W-2 wages, has $150,000 of qualified property, and generates $200,000 of qualified business income. Kyra
also has a part-time job earning wages of $12,200 and receives $3,650 of interest income. Her standard deduction is $13,850.
Assume the QBI amount is net of the self-employment tax deduction.
What is Kyra's tentative QBI based on the W-2 Wages/Capital Investment Limit?
Determine Kyra's allowable QBI deduction.
Expert Answer:
Posted Date:
