Rachel Is an Accountant Who Practices as a Sole Proprietor

question 46

Essay

Rachel is an accountant who practices as a sole proprietor. This year, Rachel had net business income of $200,000 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 $140,000. Calculate Rachel's deduction for qualified business income.

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Definitions:

Marginalization

Refers to the process by which certain groups are pushed to the edge of society by denying them access to resources and opportunities, leading to their decreased agency and participation in social, economic, and political life.

Action Plan

A detailed strategy outlining steps or measures needed to achieve a specific goal or solve a problem.

Project Manager

A professional responsible for planning, executing, and finalizing projects according to deadlines and within budget.

Deviations

Instances of diverging from a standard, norm, or expected pattern.