ACCT 308 - Concepts of Federal Income Tax Accounting

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ACCT 308 - Concepts of Federal Income Tax Accounting Assignment - California State University Fullerton, USA

Question - Thad, a single taxpayer, reports taxable income before the QBI deduction of $188,000. Thad, a CPA, operates an accounting practice as a single member LLC (which he reports as a sole proprietorship). During the tax year, his proprietorship generates qualified business income of $150,400 after deducting self-employment taxes, W-2 wages of $112,800, and $12,400 of qualified property.

Assume the QBI amount is net of the self-employment tax deduction. If required, round any division to two decimal places. Round your final answer to the nearest dollar.

What is Thad's QBI deduction?

Reference no: EM132436950

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