Ben Owns and Operates as a Sole Proprietorship, a Machine

question 3

Essay

Ben owns and operates as a sole proprietorship, a machine repair shop that generates a profit of about $150,000 annually. The business pays wages of about $50,000 annually. The building and most of the equipment is leased so there is no qualified property. Ben files as single and claims the standard deduction. He has a large unrealized gain in bitcoin that he acquired in 2014 and is wondering when he should sell it and whether he should sell it all in one year or over a few years. Advise Ben as to how the sale of the bitcoin and its resulting capital gain can affect his QBI deduction.

---

Definitions:

PAP Test

A medical procedure, also known as a Pap smear, used for the early detection of cervical cancer in women.

Cold Sore

Cold sore, also known as a fever blister, is a common viral infection manifesting as small, painful blisters on the lips or around the mouth, caused by the herpes simplex virus.

Neurotransmitters

Chemical messengers that transmit signals across synapses from one neuron to another, influencing mental and physical functions.

Mood

A temporary state of mind or feeling that influences an individual's emotional state.