Sam and Betty, Each Single, Each Generate Sole Proprietor Income

question 12

Multiple Choice

Sam and Betty, each single, each generate sole proprietor income of $240,000. Sam's income is generated from a wholesale business while Betty's is earned from her law practice. Neither has any employees or qualified assets. Both claim the standard deduction and have other income equal to the standard deduction amount.

• A) Both Sam and Betty will have a QBI deduction of $48,000.
• B) Sam can obtain a QBI deduction, but Betty cannot because of the taxable income level and law practice is a specified service business.
• C) Neither Sam nor Betty will generate a QBI deduction due to their taxable income levels.
• D) None of the above.

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Definitions:

Monitoring Progress

The systematic tracking of an individual's or group's advancement or development over time.

Goal Attainment

The process of setting objectives and successfully achieving them through planned actions and strategies.

Effectiveness Of Interventions

The degree to which targeted actions or treatments successfully achieve desired outcomes in addressing a problem.

Universally Accepted

Widely recognized or approved by all parties or societies.