Rachel Is an Accountant Who Practices as a Sole Proprietor

question 12

Essay

Rachel is an accountant who practices as a sole proprietor.This year, Rachel had net business income of $270,000 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 $225,000.Calculate Rachel's deduction for qualified business income.

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Definitions:

Terminating

The act of bringing something to an end or the process of something coming to an end.

Ending Time

The scheduled or agreed-upon time at which a service, event, or activity concludes.

Client Strengths

The internal resources, skills, and positive qualities that clients possess, which can be leveraged in the therapeutic process to achieve their goals.

Enabler Role

A support role that facilitates the process of empowerment or rehabilitation, often used in contexts of therapy and support services.