Xavier, who is single, owns and operating a clothing store. He operates the retail establishment as a
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Xavier, who is single, owns and operating a clothing store. He operates the retail establishment as a sole proprietorship. He has one full-time employee whom he pays $90,000. He owns the building where the shop is located, having purchased it five years ago for $700,000. After taking five years of depreciation, the property's basis is $610,000. The shop's net business income for the year is $650,000. Xavier's taxable income before the qualified business income (QBI) deduction is $510,000.
Calculate Xavier's qualified business income (QBI) deduction for the current year.
Related Book For
Taxation Of Individuals 2017
ISBN: 9781259548666
8th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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