1 Your Client took a loss of $18,000 on his 2022 Schedule C,resulting in a negative Qualified BusinessIncome of $18,000 on the 2022 tax return. For 2023,your Client has a net profit of $25,679,and aQualified Business Income of $18,952(not counting any carryover of negative QBI from last year to thisyear).The Client's taxable Income is $12,098.How much Qualified Business Income Deduction will yourclient receive for 2023(assuming that no other factors affect the amount?

The Qualified Business Income (QBI) deduction is calculated as the lesser of two amounts:20% of the…

Answered: year). The Client's taxable Income is…

year). The Client's taxable Income is $12,098.How much Qualified Business Income Deduction will your client receive for 2023(assuming that no other factors affect the amount?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 36P

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Your Client took a loss of $18,000 on his 2022 Schedule C,resulting in a negative Qualified Business
Income of $18,000 on the 2022 tax return. For 2023,your Client has a net profit of $25,679,and a
Qualified Business Income of $18,952(not counting any carryover of negative QBI from last year to this
year).The Client's taxable Income is $12,098.How much Qualified Business Income Deduction will your
client receive for 2023(assuming that no other factors affect the amount?

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