Question
Through November, Cameron has received gross income of $105,000. For December, Cameron is considering whether to accept one more work engagements for the year. Engagement
Through November, Cameron has received gross income of $105,000. For December, Cameron is considering whether to accept one more work engagements for the year. Engagement 1 will generate $9,080 of revenue at a cost to Cameron of $4,600, which is deductible for AGI. In contrast, engagement 2 will generate $7,450 of qualified business income (QBI) which is eligible for the 20% QBI deduction. Cameron files as a single taxpayer. Calculate Camerons taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has no itemized deductions.
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