Business
Business, 26.02.2020 03:22, winnie45

Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000.

a. Calculate Roquan’s deduction for qualified business income.
b. Assume the same facts as earlier, except Roquan’s taxable income before the deduction for qualified business income is $300,000.

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Answers: 2

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Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had...

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