In 2024, Meghann, a single taxpayer, has QBI of $55,000 and modified taxable income of $39,000 (this is also her taxable income before the QBI deduction, and No capital gain). Given this information, what is Meghann’s QBI deduction

Question

BlackTom AI · Accepted Answer

We’re asked to compute Meghann’s QBI deduction using the given figures for 2024.
First, note Meghann is a single taxpayer with QBI = 55,000 and modified taxable income (taxable income before the QBI deduction) = 39,000. There is no capital gain.
Option A: $7,800. This would be 20% of Meghann’s modified taxable income (0.20 × 39,000 = 7,800).
Option B: $15,600. This would represent 28.36% of QBI (0.28 × 55,000 ≈ 15,400) or some other miscalculation; it does not align with the QBI deduction rules.
Option C: "$11,00" appears to be a mis-typed value intended as $11,000. That amount corresponds to 20% of QBI (0.20 × 55,000 = 11,000), which is a plausible component but must be compared to the limit based on taxable income, so alone it is not the final deduction.
Option D: $22,000. This equals 40% of QBI (0.40 × 55,000 = 22,000) and is simply not aligned with the QBI deduction formula.
Now, let’s apply the actual rule: the QBI deduction is the lesser of (a) 20% of QBI, and (b) 20% of modified taxable income. Here, 20% of QBI is 0.20 × 55,000 = 11,000. Meanwhile, 20% of modified taxable income is 0.20 × 39,000 = 7,800. The lesser amount is 7,800.
Therefore, the correct deduction is 7,800, and the other options are incorrect for the reasons described: they either miscalculate 20% of QBI, misapply the percentage to taxable income, or reflect unrelated or erroneous percentages.

In 2024, Meghann, a single taxpayer, has QBI of $55,000 and modified taxable income of $39,000 (this is also her taxable income before the QBI deduction, and No capital gain). Given this information, what is Meghann’s QBI deduction

View Explanation

Log in for full answers

Similar Questions

What is the basic deduction calculation for the qualified business income deduction?

Which of the following is the overall limitation to the qualified business income (QBI) deduction?

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler