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' 20 . ' | Hide Explunationfir Calculate the taxpayer's qualified business income deduction for a qualified trade or business: Filing status: Single Taxable income: $100,000 Explanation X Net capital gains: $0 Choice "A" is incorrect. The W-2 wage and property limitations do not apply to Qualified business income (QBI): $30,000 taxpayers with taxable income before the QBI deduction below the taxable income ' threshold. Therefore, the deduction for QB is not limited to $5,000 (W-2 wages of W-2 wages: $10,000 $10,000 x 50% = $5,000). A. $5,000 Choice "B" is incorrect. The QBI deduction is 20 percent of the $30,000 QBI, not 50 B. $15,000 percent. C. $20.000 Choice "C" is incorrect. $20,000 is the overall taxable income limitation: $100,000 : ' taxable income $0 net capital gains = $100,000 x 20% = $20,000. The basic QBI D. $6,000 deduction of $6,000 is less than the overall limitation of $20,000, so the limit does not apply. Choice "D" is correct. $30,000 QBI x 20% = $6,000. W-2 wage and property limits do not apply to single taxpayers with taxable income before the QBI deduction below the taxable income threshold of $182,100 (2023).
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