Bruce and Amanda are married during the tax year. Bruce is a botanist at Green Corporation Bruce earns a salary of $56.000 per year Green Corporation has an accountable reimbursement plan During the year. Bruce has $5,000 of employee expenses. Green Corporation reimburses Bruce for only $4.000 of expenses Bruce decides to put $5.500 into a Traditional IRA Amanda owns a financial consulting firm as a sole proprietor (it qualifies as a full trade or business). Amanda generates $80.000 of revenues during the year. She has the following business payments associated with her firm Utilities: $2,000 Office Rent: $14,000 Self-Employment Tax $5,000 Salary for her secretary: $20.000 Fines/Penalties: $8,000 Payroll Taxes (Employer Portion): $1.000 Business Meals: $2.000 Bribe to police officer to forgive parking violation $1.500 Due to the income and expenses above, Amanda has $39.500 of Qualified Business Income for the purposes of the QBI deduction Also, during the year a tomado damaged the roof of their personal residence They purchased the home five years ago for $250.000: The value of the home after the tomado was $200,000. Bruce and Amanda do not know the fair market value of the home immediately before the tomado, but the repair cost was $20,000. The home is located in a federally declared disaster area They also have the following personal expenses during the year Medical Expenses: $18,750 1 State & Local Taxes $4,000 Federal Income Tax Payments: $6.000 The personal exemption amount for the tax year is: 50 The standard deduction amounts are listed below: Single: $12.400) Head of Household: $18,650 Married Filing Jointly: $24,800 Questions (10)