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Assignment 6 A business generate a certain amount of income that is classified as qualified business income (QBI) for purposes of Section 199A. The taxpayer
Assignment 6
A business generate a certain amount of income that is classified as qualified business income (QBI) for purposes of Section 199A.
The taxpayer seeking to claim a qualified business income deduction (QBID) has taxable income as shown below. The taxpayer is married filing a joint return.
The business is a service business or a non-service business as shown below.
In each situation, the W-2 wages paid are $20,000 and the UBIA is $50,000.
REQUIRED: Complete the blanks in the table for the allowed QBID. Do it for the 2022 tax year.
Situation | QBI | Service Business? | Taxable Income | Allowed QBID |
A | $100,000 | Yes | $285,000 | |
B | $100,000 | No | $285,000 | |
C | $100,000 | Yes | $350,100 | |
D | $100,000 | No | $350,100 | |
E | $200,000 | Yes | $370,100 | |
F | $200,000 | No | $370,100 | |
G | $200,000 | Yes | $390,100 | |
H | $200,000 | No | $390,100 | |
I | $300,000 | Yes | $479,800 | |
J | $300,000 | No | $479,800 |
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