30. Margarita operates a sole proprietorship that earns $100,000 of qualified business income after deducting salaries of $300,000. The sole proprietorship is not a specified service business. She files a single tax return for 2020. Assume her taxable income before the QBI deduction is $175,000. Margarita's QBI deduction for 2020 is:
a. $0. b. $20,000. c. $35,000. d. $60,000. e. $80,000.
31. Rachel operates a sole proprietorship that earns $200,000 of qualified business income after deducting salaries of $60,000. The sole proprietorship is not a specified service business. She files a single tax return for 2020. Assume her taxable income before the QBI deduction is $230,000. Rachel's QBI deduction for 2020 is:
a. $0. b. $30,000. c. $35,000. d. $46,000. e. $52,000.
32. Jordan performs services for Ryan. Which of the following factors, if any, indicates that Jordan is an independent contractor rather than an employee?
a. Ryan sets the work schedule. b. Ryan provides the tools used. c. Jordan follows a specific set of instructions from Ryan to complete tasks. d. Jordan is paid based on tasks performed. e. None of these.
33. Which of the following would constitute an employer-employee relationship?
a. A plumber who comes to your home to fix a leaking faucet. b. A CPA who prepares a client's tax return. c. A physician who hires a nurse to help her with patient screening and preliminary tests in the office. d. A gardener who takes care of individual lawns for a monthly fee. e. None of these.