Rachel Is an Engineer Who Practices as a Sole Proprietor

question 70

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),she 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:

Genital Herpes

A common sexually transmitted infection marked by genital pain and sores, caused by the herpes simplex virus.

Herpes Simplex Virus

A virus that causes infections in various parts of the body, most notably as cold sores or genital herpes.

Genital Human Papillomavirus

A type of sexually transmitted infection (STI) caused by the human papillomavirus, affecting the genital areas.

Cryosurgery

A surgical technique that uses extreme cold to freeze and destroy abnormal tissue.