Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Kate, a single taxpayer, owns and operates an ice cream shop. She does not have any employees and reported qualified business income of $125,000 through
Kate, a single taxpayer, owns and operates an ice cream shop. She does not have any employees and reported qualified business income of $125,000 through a sole proprietorship in 2021. Kate has AGI of $155.000, including $20,000 of net capital gain, and no itemized deductions, and she claimed the standard deduction of $12,550 on her 2021 Form 1040. Her modified taxable income is $122,450 ($155,000 - $12,550- $20,000). What is Kate's QBI deduction
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started