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Help plz Elmer Johnson owns a sole proprietorship. For the 2022 tax year his Schedule C showed $175,000 of net profit. He also had a
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Elmer Johnson owns a sole proprietorship. For the 2022 tax year his Schedule C showed \$175,000 of net profit. He also had a Section 1231 gain of $20,000 from the sale of business equipment. In addition, his business checking account earned $300 of interest income. Elmer will qualify for the QBI deduction. He is not subject to the wage or taxable income limitations. a. What is Elmer's earnings subject to self-employment tax on Schedule SE? b. Compute Elmer's total self-employment tax. c. What is elmer's QBI deduction? d. Compute Elmer's total increase in his taxable income attritutable to his business for 2022Step by Step Solution
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