Question
In 2019, Wilma Ways sole proprietorship, WW Bookstore, generated $120,000 net profit. In addition, Wilma recognized a $17,000 gain on the sale of business furniture
In 2019, Wilma Ways sole proprietorship, WW Bookstore, generated $120,000 net profit. In addition, Wilma recognized a $17,000 gain on the sale of business furniture and shelving, all of which was recaptured as ordinary income. The business checking account earned $960 interest income. Which of these income items are subject to self-employment tax? Compute Wilmas 2019 self-employment tax. Compute Wilma's allowable QBI deduction, assuming $43,000 of W-2 wages and $90,000 unadjusted basis of tangible depreciable property. Further assume the overall taxable income limitation on QBI does not apply. Compute Wilmas 2019 taxable income from her bookstore activity.
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