An examination of the RB Partnership's tax books provides the following information for the current year...

 

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An examination of the RB Partnership's tax books provides the following information for the current year Sales Revenue Cost of Goods Sold 450,000 130,000 Long-term capital gain Operating expenses 6,000 100,000 Guaranteed payment to Rachel for services 45,000 Depreciation Expense (MACRS) 50,000 Cash distributions to each partner 20,000 Section 179 expense elected, 25,000 Interest on Colorado state bonds (exempt interest income) 2,000 Rachel is a 40% general partner in partnership capital, profits, and losses. a. Compute Ordinary Income for the Partnership. Label each item in your calculation. b. List the items (description and amount) from the above information that Rachel (40% owner) must report on her 1040 What is the amount of Rachel's earnings that are subject to self-employment tax assuming this is her only business income? d. What is Rachel's tentative Qualified Business Income deduction? For the toolbar, press ALT+E10 (PC) or ALT+FN+F10 (Mac) An examination of the RB Partnership's tax books provides the following information for the current year Sales Revenue Cost of Goods Sold 450,000 130,000 Long-term capital gain Operating expenses 6,000 100,000 Guaranteed payment to Rachel for services 45,000 Depreciation Expense (MACRS) 50,000 Cash distributions to each partner 20,000 Section 179 expense elected, 25,000 Interest on Colorado state bonds (exempt interest income) 2,000 Rachel is a 40% general partner in partnership capital, profits, and losses. a. Compute Ordinary Income for the Partnership. Label each item in your calculation. b. List the items (description and amount) from the above information that Rachel (40% owner) must report on her 1040 What is the amount of Rachel's earnings that are subject to self-employment tax assuming this is her only business income? d. What is Rachel's tentative Qualified Business Income deduction? For the toolbar, press ALT+E10 (PC) or ALT+FN+F10 (Mac)