Rachel is an engineer who practices as a sole proprietor. Thisyear, Rachel had net business income of $500,000 from her business.Assume that Rachel pays $20,000 wages to her employees, she has$500,000 of property (unadjusted basis of equipment she purchasedlast year), has no capital gains, and her taxable income before thededuction for qualified business income is $380,000. CalculateRachel's deduction for qualified business income.
