Campbell, a single taxpayer, has $400,000 of profits from her general store that she operates as a sole proprietorship. She has $100,000 of employee wages, $40,000 of qualified property, and $500,000 of taxable income before the deduction for qualified business income. How much is Campbell's deduction for qualified business income

$80,000

Explanation:

The deduction of Qualified business income may be limited by the amount of W-2 wages paid by the qualified trade or business and the unadjusted basis in qualified property immediately after acquisition (UBIA) of the qualified property held by the trade or business.

Hence, the deduction will be out of the lesser of the three below:

i. W-2 wages is $100,000

ii. 20% of qualified business income = 20% * 400,000 = $80,000

iii. 20% of taxable income = 20% * 500,000 = $100,000

From the information above, $80,000 will be the amount of Campbell deduction for qualified business income

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whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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