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Ben and Molly are married and will file jointly. Ben generates $300,000 of qualified business income from his single-member uc.C (a law firm). He reports
Ben and Molly are married and will file jointly. Ben generates $300,000 of qualified business income from his single-member uc.C (a law firm). He reports his business as a sole proprietorship. Wages paid by the law firm amount to $40,000; the iaw firm has no significant property. Molly is employed as a tax manager by a lacal CPA firm. Their modified taxable income is $400,100 (this is also their taxable income before the deduction for qualifed business income). Determine their allowable QBI deduction for 2022. x Theck My Wark With the reduction in the corporate income tax rate to 21 percent in 2018 , Congress needed to provide a means of reducing the taxes en businesses that operate in different business forms. Congress accomplished this with the creation of the deduction for qualified business income (5 199A). Qualified business income (QB1) is defined as the ordinary income less ordinary deductions a taxpayer earns from a "qualified trade or business" conducted in the United States by the taxpayer
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