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Jake and Mason Plumley age-66 and -56, are a married couple who had the following relevant transactions for 2020:
Adjusted gross income excluding the following with no salaries $ 60,300
SMALL BUSINESS OPERATIONS (Hardware Sales)
Gross income $278,100
Supplies and products for sale 80,950
Salaries and wages paid, including payroll taxes 54,250
Business interest expense 1,200
Business property taxes 650
Insurance 260
Other business expense 2,845
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* Question (Answer in Excel spreadsheet)
a. Self-employment tax.
b. Qualified business income deduction. One half of the self-employment tax is deducted in arriving at QBI.
c. Net effect on taxable income. One half of the self-employment tax is deducted in arriving at taxable income.
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