22. Paul sells real estate in the evening and on weekends (considered an active trade or business). He runs his business from a rental office he shares with several other realtors. Paul has been operating in a business-like way since 2004 and has always shown a profit. He had the following income and expenses from his business:

Commissions earned $21,250

Expenses:

Advertising 2,200

Telephone 95

Real estate license 130

Rent 6,000

Utilities 600

This real estate activity qualifies as a trade or business under the Internal Revenue Code for purposes of the Qualified Business Income deduction.

What is Schedule C net income (business income)?

*The answer is not 12,225