Answer:
Explanation:
Given that :
Roquan is a single taxpayer and an attorney;
Roquan had net profit from self-employment of $97,455
The deductible portion of his self-employment taxes is $7,455
His taxable income before the deduction for qualified business income is $100,000.
SInce ; he is a single taxpayer and an attorney; Roquan is eligible for The standard 20% Qualified Business Income and given that his taxable income is lesser than a threshold of $157000; W-2 limitations do not apply to Roquan.
So in the case of Roquan.
Roquan deduction for qualifies business income will be lesser 20% of the Qualified Business Income.
Roquan deduction for qualifies business income = 20% × $97,455
Roquan deduction for qualifies business income = 0.20 × $97,455
Roquan deduction for qualifies business income = $19, 491
b.
Roquan taxable income is $300,000.
Given that the income is greater than Standard threshold of $207,500 for a single taxpayer and is from "Specified service businesses" as an attorney and practices as a sole proprietor , he is not eligible for the 20% deduction.
So;
Roquan deduction for qualifies business income = $0
