What is qualified business income? Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest

What is qualified business income?

 

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Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing crafts Travel and lodging for craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition Lizzie's room and board at college. Cash contributions to the Red Cross $ 130,600 18,550 1,800 746 950 $ 13,700 6,700 7,542 6,500 340 1,300 17,500 2,600 1,840 2,700 5,910 160 2,380 1,692 6,080 3,500 12,920 600 Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing crafts Travel and lodging for craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition Lizzie's room and board at college. Cash contributions to the Red Cross $ 130,600 18,550 1,800 746 950 $ 13,700 6,700 7,542 6,500 340 1,300 17,500 2,600 1,840 2,700 5,910 160 2,380 1,692 6,080 3,500 12,920 600

Answer rating: 100% (QA)

To calculate the taxable income we need to subtract the deductible expenses from the total income Th... View the full answer