Kelly Operates a Sole Proprietorship with Qualified Business Income of $920,000

question 85

Multiple Choice

Kelly operates a sole proprietorship with qualified business income of $920,000. Her business paid W-2 wages of $250,000 and owns depreciable tangible property with an unadjusted basis of $410,000. Compute Kelly's allowable QBI deduction before the taxable income limitation.

• A) $184,000
• B) $125,000
• C) $72,750
• D) $0

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Definitions:

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