Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nancy, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a specified services business. In 2022, the business

Nancy, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2022, the business pays $100,000 in W2 wages, has $150,000 of qualified property, and generates $350,000 of qualified business income. Nancy has no other items of income, deduction, or loss and will take the standard deduction of $12,950. Assume the QBI amount is net of the self-employment tax deduction.

What is Nancy's qualified business income deduction?

Please use 2022 Tax Rate.

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

Step: 3

blur-text-image

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

Lease Audits The Essential Guide

Authors: Theodore H Hellmuth

1st Edition

0934055041, 978-0934055048

More Books

Students also viewed these Accounting questions

Question

true or false:The magic lantern was the earliest screen projector

Answered: 1 week ago

Question

Discuss the key people management challenges that Dorian faced.

Answered: 1 week ago

Question

How fast should bidder managers move into the target?

Answered: 1 week ago