Question
Mark, a married taxpayer (filing jointly with spouse), operates a printing business (not an SSTB) as a sole proprietor. The business has two employees who
Mark, a married taxpayer (filing jointly with spouse), operates a printing business (not an SSTB) as a sole proprietor. The business has two employees who are paid a total of $160,000 during 2022. Assume that the business has no significant assets. During 2022, qualified business income is $410,000. Mark and their spouse report taxable income before the QBI deduction of $470,000. Their QBI deduction is:
| a. | $80,000 | |
| b. | $0 since income > $440,100 | |
| c. | $75,000 | |
| d. | $82,000 |
On May 1, 2022, Sally Company started a company and incurred startup costs from investigation and other legal and accounting costs in 2022 totaling $47,000. Determine the total amount that Sally may deduct for 2022 amortization of the startup costs.
| a. | $2,089 | |
| b. | $1,867 | |
| c. | $5,000 | |
| d. | $6,867 |
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
