Question

Nareen is single, 68 years old, and reports the following in 2018: a. $12,000 alimony received (divorced in 2010) b. $82,520 Schedule C profit c. $3,500 SEP (self-employed pension) plan contribution d. $7,150 qualified dividends e. $10,455 total itemized deductions f. $11,660 self-employment tax g. $7,320 LTCG h. $498 interest income i. $8,450 self-employed health insurance What is Nareen's 2018 QBI deduction?

Answer 1

Nareen's 2018 QBI deduction is $12948.

Step-by-step explanation:

Schedule C profit 82520

SEP (self-employed pension) plan contribution (3500)

self-employment tax (50%*11660) (5830)

self-employed health insurance (8450)

(17780)

Qualified business income $64740

Qualified business income rate 20%

QBI deduction $12948

Therefore, Nareen's 2018 QBI deduction is $12948.