Shelly has $200,000 of QBI from her local jewelry store (a sole proprietorship). Shelly's proprietorship paid $30,000 in W-2 wages and has $20,000 of qualified property. Shelly's spouse earned $74,800 of wages as an employee, they earned $20,000 of interest income during the year, and they will be filing jointly and using the standard deduction. Assume the QBI amount is net of the self-employment tax deduction. What is their QBI deduction for 2020?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter9: Deductions: Employee And Self- Employed-related Expenses
Section: Chapter Questions
Problem 41P: Shelly has 200,000 of QBI from her local jewelry store (a sole proprietorship). Shellys...
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Problem 2-24 (LO. 3, 4)
Shelly has $200,000 of QBI from her local jewelry store (a sole proprietorship).
Shelly's proprietorship paid $30,000 in W-2 wages and has $20,000 of qualified
property. Shelly's spouse earned $74,800 of wages as an employee, they earned
$20,000 of interest income during the year, and they will be filing jointly and
using the standard deduction.
Assume the QBI amount is net of the self-employment tax deduction.
What is their QBI deduction for 2020?
Transcribed Image Text:Problem 2-24 (LO. 3, 4) Shelly has $200,000 of QBI from her local jewelry store (a sole proprietorship). Shelly's proprietorship paid $30,000 in W-2 wages and has $20,000 of qualified property. Shelly's spouse earned $74,800 of wages as an employee, they earned $20,000 of interest income during the year, and they will be filing jointly and using the standard deduction. Assume the QBI amount is net of the self-employment tax deduction. What is their QBI deduction for 2020?
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