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Today, 05:04

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?

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  1. Today, 05:12
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    Nareen's 2018 QBI deduction is $12948.

    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.
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