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Shelly, a single taxpayer, has $400,000 of profits from her general store, which she operates as...

Shelly, a single taxpayer, has $400,000 of profits from her general store, which she operates as a sole proprietorship. She has $100,000 of employee wages, $40,000 of qualified property, and $500,000 of taxable income before the deduction for qualified business income. How much is Shelly’s deduction for qualified business income?

$0

$80,000

$100,000

$50,000

$26,000
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Answer #1

Answer : Option D , $50,000

Explanation;  

Her deduction for qualified business income is limited to 50% of her wages.

$100,000 × 50 % = $50,000

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