Determine Jennifer qualified business income deduction

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Problem - Jennifer is a CPA and a single taxpayer using the standard deduction. In 2019, her CPA practice generates qualified business income of $162,200 and she has no other income or losses. Jennifer's taxable income before the QBI deduction is $150,000 ($162,200 - $12,200 standard deduction). Jennifer employs an administrative assistant in her practice and pays him $75,000 in wages. The unadjusted basis of depreciable assets employed in the practice total $30,000.

Required -

a. What is Jennifer's qualified business income deduction?

b. Determine Jennifer's qualified business income deduction if her CPA practice generates qualified business income of $312,200.

Reference no: EM132644792

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