Ben Owns and Operates a Machine Repair Shop as a Sole

question 4

Essay

Ben owns and operates a machine repair shop as a sole proprietorship. It generates a profit of about $150,000 annually. The business pays wages of about $50,000 annually. The building and most of the equipment are leased so there is no qualified property. Ben files as single and claims the standard deduction. He has a large unrealized gain in bitcoin that he acquired in 2014 and is wondering when he should sell it and whether he should sell it all in one year or over a few years. Advise Ben as to how the sale of the bitcoin and its resulting capital gain can affect his QBI deduction in 2019.

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Definitions:

Financial Perspective

An aspect in business strategy focusing on financial metrics like revenue growth, profitability, and shareholder value to assess a company’s performance.

Consumer Bill of Rights

A set of principles designed to protect consumer interests, ensuring they have the right to safety, to be informed, to choose, and to be heard.

Ethics of Exchange

Principles and standards that guide fair and equitable trade practices between parties in a transaction.

Right to Choose

The consumer’s entitlement to have a variety of options when selecting goods or services, emphasizing the importance of competition and quality in markets.