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In 2 0 2 3 , Wilma Way s sole proprietorship, WW Bookstore, generated $ 1 2 0 , 0 0 0 net profit. In
In Wilma Ways sole proprietorship, WW Bookstore, generated $ net profit. In addition, Wilma recognized a $ Section gain on the sale of business furniture. The business checking account earned $ interest income.
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Which of these income items are subject to selfemployment tax?
Compute Wilmas selfemployment tax, assuming Wilma has no other earned income.
Compute Wilma's allowable QBI deduction, assuming $ of W wages and $ unadjusted basis of tangible depreciable property. Further assume the overall taxable income limitation on QBI does not apply and Wilmas overall taxable income is sufficiently high that the W wage limitation applies.
Compute the overall impact of the bookstore activity on Wilmas taxable income.
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