Assignment 6 A business generate a certain amount of income that is classified as qualified...
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Accounting
Assignment 6
A business generate a certain amount of income that is classified as qualified business income (QBI) for purposes of Section 199A.
The taxpayer seeking to claim a qualified business income deduction (QBID) has taxable income as shown below. The taxpayer is married filing a joint return.
The business is a service business or a non-service business as shown below.
In each situation, the W-2 wages paid are $20,000 and the UBIA is $50,000.
REQUIRED: Complete the blanks in the table for the allowed QBID. Do it for the 2022 tax year.
Situation
QBI
Service Business?
Taxable Income
Allowed QBID
A
$100,000
Yes
$285,000
B
$100,000
No
$285,000
C
$100,000
Yes
$350,100
D
$100,000
No
$350,100
E
$200,000
Yes
$370,100
F
$200,000
No
$370,100
G
$200,000
Yes
$390,100
H
$200,000
No
$390,100
I
$300,000
Yes
$479,800
J
$300,000
No
$479,800
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