Ben and Molly are married and will file jointly. Ben generates $300,000 of qualified business income from his single-member LLC (a law firm). He reports his business as a sole proprietorship. Wages paid by the law firm amount to $40,000; the law firm has no significant property. Molly is employed as a tax manager by a local CPA firm. Their modified taxable income is $400,100 (this is also their taxable income before the deduction for qualified business income). Determine their allowable QBI deduction for 2022. 10,000 X
Ben and Molly are married and will file jointly. Ben generates $300,000 of qualified business income from his single-member LLC (a law firm). He reports his business as a sole proprietorship. Wages paid by the law firm amount to $40,000; the law firm has no significant property. Molly is employed as a tax manager by a local CPA firm. Their modified taxable income is $400,100 (this is also their taxable income before the deduction for qualified business income). Determine their allowable QBI deduction for 2022. 10,000 X
Chapter15: Taxing Business Income
Section: Chapter Questions
Problem 28P
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Transcribed Image Text:Ben and Molly are married and will file jointly. Ben generates $300,000 of qualified business income from his single-member LLC (a law
firm). He reports his business as a sole proprietorship. Wages paid by the law firm amount to $40,000; the law firm has no significant
property. Molly is employed as a tax manager by a local CPA firm. Their modified taxable income is $400,100 (this is also their taxable
income before the deduction for qualified business income).
Determine their allowable QBI deduction for 2022.
10,000 X
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