Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ahab, a married taxpayer, operates a discount tobacco store as a sole proprietor. The business has no employees (Ahab provides all services to customers). During

Ahab, a married taxpayer, operates a discount tobacco store as a sole proprietor. The business has no employees (Ahab provides all services to customers). During 2020, Ahabs qualified business income is $210,000 [this is his Schedule C (Form 1040) net income reduced by his self-employment tax deduction]. Ahabs AGI is $274,800, which includes wages earned by his spouse, but no other income. He and his spouse claim the standard deduction ($24,800).
What is the qualified business income deduction that can be claimed by Ahab and his wife on their joint income tax return?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin

5th Canadian edition

133472264, 978-0133446265, 133446263, 978-0133472264

More Books

Students also viewed these Accounting questions