Rachel Is an Accountant Who Practices as a Sole Proprietor

question 12

Essay

Rachel is an accountant who practices as a sole proprietor.This year, Rachel had net business income of $270,000 from her practice.Assume that Rachel pays $50,000 wages to her employees, she has $20,000 of property (unadjusted basis of equipment she purchased last year), has no capital gains, and her taxable income before the deduction for qualified business income is $225,000.Calculate Rachel's deduction for qualified business income.

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Definitions:

Monosaccharides

Simple sugars consisting of a single sugar molecule and serving as the basic building blocks of carbohydrates.

Waxes and Steroids

Diverse types of lipids, with waxes serving as protective coatings and steroids playing roles in cellular signaling and structure.

Lipids

A broad group of naturally occurring molecules that include fats, waxes, sterols, fat-soluble vitamins, etc., primarily used for energy storage and in cell membranes.

Hydrophobic

Describes molecules or surfaces that repel water, inhibiting the ability of water to bond or saturate the material or molecule.