Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

melissa self employed accountant. net sch c income of 120000. taxable income was 99522 for the qbi threshold. she will claim depreciation. to accurately figure

melissa self employed accountant. net sch c income of 120000. taxable income was 99522 for the qbi threshold. she will claim depreciation. to accurately figure the computation must take account the ubia of any property held by business figure deduction using simple 2 step computation her taxable is below the lower threshold since she is involved in specified trade she will us multi step process to compute deduction none of these apply cause not entitled to deduction

image text in transcribed

Question 20 of 23. Melissa, a single taxpayer, has qualified business income of $150,000. Her business paid Form W-2 wages and holds qualified property. As Melissa's Tax Professional, you determine that her qualified business income deduction will be limited because her taxable income exceeds the lower threshold for her filing status. You will begin figuring the amoun of her deduction by multiplying $150,000, the amount of her qualified business income, by 20%. Your next step is to: O Deduct the lowest threshold, $157,500, from her taxable income. O Determine the greater of 50% of Form W-2 wages paid OR the sum of 25% of Form W-2 wages, plus 2.5% of the UBIA of qualified property held by her business. O Determine the lesser of her qualified business income and 50% of Form W-2 wages paid. O Determine the lesser of her qualified business income and 2.5% of the unadjusted basis of qualified property, Mark for follow up

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Effective Writing A For Accountants

Authors: Claire B. May, Gordon S. May

11th Edition

0134667387, 9780134667386

More Books

Students also viewed these Accounting questions