Tanuja Singh Is a CPA and Operates Her Own Accounting

question 27

Multiple Choice

Tanuja Singh is a CPA and operates her own accounting firm (Singh CPA, LLC) . As a single member LLC, Tanuja reports her accounting firm operations as a sole proprietor. Tanuja has QBI from her accounting firm of $540,000, reports W-2 wages of $156,000, and the unadjusted basis of property used in the LLC is $425,000. Tanuja is married and will file a joint tax return with her spouse. Their taxable income before the QBI deduction is $475,000 and their modified taxable income is $448,000. What is Tanuja's QBI deduction for 2018.

• A) $-0-.
• B) $49,625.
• C) $78,000.
• D) $89,600.
• E) None of the above.

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Definitions:

Rationally Evaluating

The process of logically assessing something to form a judgment or conclusion.

Evidence

Reasons for believing that a statement or claim is true or probably true.

Confirmation Bias

The human tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Memorable Events Error

A cognitive bias that occurs when memorable or significant events are more easily recalled than ordinary events, skewing perception and decision-making.