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Rachel (single) 100% owns and operates Flair LLC (filed as an S corporation). This year, Rachel's qualified business income after all applicable deductions was $300,000.

Rachel (single) 100% owns and operates Flair LLC (filed as an S corporation). This year, Rachel's qualified business income after all applicable deductions was $300,000. Assume that Rachel pays $50,000 of W-2 wages to her employees and she has $20,000 of property (unadjusted basis of equipment the purchased last year). Her overall taxable income before the deduction for qualified business Income is - $330.000 


Assure Flair LLC is an accounting practice. What is Rachel's qualified business income deduction?

Assume Instead that Flair LLC sells clothing for cheer and pom teams. What is Rachel's qualified business income deduction?

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