Campbell, a single taxpayer, has $400,000 of profits from her general store that she operates as a sole proprietorship. She has $100,000 of employee wages, $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 deduction for qualified business income is limited to 50% of her wages ($100,000 x 50% = $50,000).

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