lianacast17
Answered

At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Joseph and Rachel are married and earn $220,800 a year, which includes $90,800 in wages from Joseph’s job managing a theater, and $130,000 of net income from Rachel’s clothing store (which is simply a sole proprietorship business reported on her Schedule C). In addition, the couple has a $150,000 portfolio, that produced $3,000 of qualified dividends and $2,000 of real estate investment trust (REIT) income in the past year. The couple’s total income is $225,800, of which $132,000 (including Rachel’s business income and the REIT income) is qualified business income (QBI). In 2020, the couple will be eligible for a $24,800 standard deduction, reducing their $225,800 of income down to only $201,000. In addition, they will receive a qualified business income (QBI) deduction for what amount? A. $0 B. $13,200 C. $26,400 D. $52,800

Sagot :

From the information given about the income, the deduction for the qualified business Income will be C. $26400.

How to calculate the deduction

From the information given, it was stated that the couple’s total income is $225,800, of which $132,000 including Rachel’s business income and the REIT income is qualified business income.

Therefore, the amount for the qualified business income deduction will be:

= Qualified business Income × Deduction

= $132000 × 20%

= $26400

Learn more about income on:

https://brainly.com/question/24778422

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.