Qualified Business Income Deduction Example 1
on 08/2/2019 at 5:54 am
FACTS: Amy is single and for 2018 has commission income from her real estate sales activities of $55,000, net of her normal business expenses. Amy has no dependent children and claims the standard deduction.
Old Law
- Net Commission Income
- 55,000
- Personal Exemption
- (4,150)
- Standard Deduction
- (6,500)
- Taxable Income
- 44,350
- x Marginal Rate
- 25%
- Tax Liability
- 6,741
New Law
- Net Commission Income
- 55,000
- Business Income Deduction
- (11,000)
- Standard Deduction
- (12,000)
- Taxable Income
- 32,000
- x Marginal Rate
- 12%
- Tax Liability
- 3,650
***Disclaimer: This communication is not intended as tax advice, and no tax accountant -client relationship results**
