Huy is single, age 40, and operates a sole proprietorship. In 2020, Huy's sole proprietorship generated income of $200,000, and the deductible business expenses totaled $120,000, for a net profit of $80,000. Huy also had other gross income of $40,000. Huy's QBI is $74,348, and his modified taxable income is $101,948. Huy's self-employment tax liability is $11,304. Huy takes the standard deduction as his itemized deductions total only $1,000. What is Huy's 2020 taxable income?
Huy is single, age 40, and operates a sole proprietorship. In 2020, Huy's sole proprietorship generated income of $200,000, and the deductible business expenses totaled $120,000, for a net profit of $80,000. Huy also had other gross income of $40,000. Huy's QBI is $74,348, and his modified taxable income is $101,948. Huy's self-employment tax liability is $11,304. Huy takes the standard deduction as his itemized deductions total only $1,000. What is Huy's 2020 taxable income?
Chapter12: Tax Credits And Payments
Section: Chapter Questions
Problem 1BCRQ
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Huy is single, age 40, and operates a sole proprietorship.
In 2020, Huy's sole proprietorship generated income of $200,000, and the deductible business expenses totaled $120,000, for a net profit of $80,000. Huy also had other gross income of $40,000. Huy's QBI is $74,348, and his modified taxable income is $101,948.
Huy's self-employment tax liability is $11,304.
Huy takes the standard deduction as his itemized deductions total only $1,000.
What is Huy's 2020 taxable income?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT