Campbell, a single taxpayer, has $400,000 of profits from her general store that she operates as a sole proprietorship. She has no employees, $40,000 of qualified property, and $500,000 of taxable income before the deduction for qualified business income. How much is Campbell's deduction for qualified business income?

Question

Quizplus · Accepted Answer

Her 20% qualified business deduction is limited to 25% of her wages ($0) plus 2.5% of her qualified property (2.5% x $40,000 = $1,000).

Campbell, a Single Taxpayer, Has $400,000 of Profits from Her