Donald owns a landscaping business (not a specified service) as a sole proprietor. In 2021, the...
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Donald owns a landscaping business (not a specified service) as a sole proprietor. In 2021, the business had gross business income of $380,000, and business expenses of $92,000, which included wages paid of $60,000. The business had qualified business property of $320,000 in 2021. Daisy, Donald's wife, had total wages of $105,000. They had no other income, no dependents, and they want to take the standard deduction for 2021. Required: Answer the following questions, showing all calculations (record answers on answer sheet): 1. What is Donald and Daisy's taxable income before the QBI deduction? 2. What is Donald and Daisy's Qualified Business Income (QBI)? 3. What is Donald and Daisy's Qualified Business Income Deduction? Donald owns a landscaping business (not a specified service) as a sole proprietor. In 2021, the business had gross business income of $380,000, and business expenses of $92,000, which included wages paid of $60,000. The business had qualified business property of $320,000 in 2021. Daisy, Donald's wife, had total wages of $105,000. They had no other income, no dependents, and they want to take the standard deduction for 2021. Required: Answer the following questions, showing all calculations (record answers on answer sheet): 1. What is Donald and Daisy's taxable income before the QBI deduction? 2. What is Donald and Daisy's Qualified Business Income (QBI)? 3. What is Donald and Daisy's Qualified Business Income Deduction?
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Answer rating: 100% (QA)
Answer To calculate Donald and Daisys taxable income before the Qualified Business Income QBI deduct... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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