Campbell, a single taxpayer, has $95,000 of profits (net of the deduction for self-employment taxes, the self-employed health insurance deduction, and the deduction for contributions to qualified self-employment retirement plans)from her general store, which she operates as a sole proprietorship. She has no employees, $40,000 of qualified property, and $50,000 of taxable income before the deduction for qualified business income. How much is Campbell's deduction for qualified business income?
A)$95,000
B)$19,000
C)$10,000
D)$8,000
E)$0

Question

Quizplus · Accepted Answer

The deduction for qualified business income (QBI) is generally 20% of the qualified business income. Campbell's QBI is $50,000, so 20% of $50,000 is $10,000.

Campbell, a Single Taxpayer, Has $95,000 of Profits (Net of the Deduction