Rachel Is an Engineer Who Practices as a Sole Proprietor

question 18

Essay

Rachel is an engineer who practices as a sole proprietor.This year, Rachel had net business income of $500,000 from her business.Assume that Rachel pays $20,000 wages to her employees, she has $500,000 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 $380,000.Calculate Rachel's deduction for qualified business income.

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Definitions:

Stakeholders

Individuals or groups that have an interest, stake, or claim in the actions and overall performance of a company, including employees, customers, suppliers, and shareholders.

Claimholders

Individuals or entities that have a claim or potential claim against a company's assets or income, including shareholders, creditors, and employees.

Secondary Stakeholders

Individuals or groups who do not engage in direct transactions with a company but are affected by or can affect its operations.

Special-Interest Groups

Organizations composed of members who share common objectives and actively seek to influence public policy in their interest.