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ennifer's pass-through business has total qualified business income of $100,000 and combined REIT dividends/PTP income of $20,000. Since her taxable income of $150,000, including $10,000 of net capital gain, is below the applicable threshold, what is her pass-through deduction

Sagot :

Answer:

the lesser amount is $24,000

Explanation:

The computation of the pass through deduction is as follows;

For that the following lesser amount should be considered

1.  The qualified business income should be 20% and the total REIT dividend ...

2. There is 20% of taxable income less net capital gain

So now the calculation is

1. 20% × ($100,000 + $20,000)

= $24,000

And,

2. 20% × ($150,000 - $10,000)

= $28000

So the lesser amount is $24,000

hence, the same is relevant

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