Assume the same facts as in Problem 33, except that Kyras business pays $60,000 of W2 wages

Question:

Assume the same facts as in Problem 33, except that Kyra’s business pays $60,000 of W–2 wages and generates $200,000 of qualified business income. Kyra also has a part-time job earning wages of $11,200 and receives $3,350 of interest income. What is Kyra’s QBI deduction?


Data from Exercises 33

Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a “specified services” business. In 2021, the business pays $100,000 in W–2 wages, has $150,000 of qualified property, and generates $350,000 of qualified business income. Kyra has no other items of income, deduction, or loss and will take the standard deduction. What is Kyra’s qualified business income deduction?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

South-Western Federal Taxation 2022 Corporations, Partnerships, Estates And Trusts

ISBN: 9780357519240

45th Edition

Authors: William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman

Question Posted: