Campbell, a Single Taxpayer, Has $95,000 of Profits from Her

question 2

Multiple Choice

Campbell, a single taxpayer, has $95,000 of profits from her general store that she operates as a sole proprietorship. She has no employees, $40,000 of qualified property, and $50,000 of taxable income before the deduction for qualified business income. How much is Campbell's deduction for qualified business income?

• A) $95,000.
• B) $19,000.
• C) $10,000.
• D) $8,000.
• E) $0.

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Definitions:

Right Of Way

An entitlement, conferred either by established custom or by explicit permission, allowing passage over a certain course within another's territory or land.

Legal Action

The process of taking a case through court to enforce or defend a legal right.

Remainderman

A person who is entitled to real property subject to a prior interest (e.g., a life estate) and who acquires the fee when the prior estate terminates.

Fee Simple

The most extensive interest in real property available in law, allowing the owner absolute ownership, including the rights to sell, lease, or bequeath the property.