Cory, a married filing jointly taxpayer, receives $200,000 in partnership income on a K-1 from ABC,...
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Cory, a married filing jointly taxpayer, receives $200,000 in partnership income on a K-1 from ABC, LLC, Cory's spouse earns no income, and the couple takes the standard deduction of $24,000 against any ordinary income. Please calculate the QBI deduction for each of the following alternative additional facts (please disregard SECA/employment taxes): a. Assume Cory also earns $100,000 of capital gains and $10,000 of qualified dividends, both from sources unrelated to ABC, LLC. Would your answer change if these additional items of income were sourced from the partnership and included on Cory's K-1? b. Disregarding the facts in (a) above, assume Cory also earns $20,000 of REIT income; c. Disregarding (a)-(b) above, assume the partnership income allocable to Cory is $2,000,000 and the partnership is defined as a specified service trade or business. d. Disregarding (a)-(c) above, assume the partnership income allocable to Cory is $2,000,000, but the partnership is not a specified service trade or business. Also, the partnership pays $600,000 of W-2 wages and the partnership's unadjusted basis in qualified property is $8,000,000. Cory, a married filing jointly taxpayer, receives $200,000 in partnership income on a K-1 from ABC, LLC, Cory's spouse earns no income, and the couple takes the standard deduction of $24,000 against any ordinary income. Please calculate the QBI deduction for each of the following alternative additional facts (please disregard SECA/employment taxes): a. Assume Cory also earns $100,000 of capital gains and $10,000 of qualified dividends, both from sources unrelated to ABC, LLC. Would your answer change if these additional items of income were sourced from the partnership and included on Cory's K-1? b. Disregarding the facts in (a) above, assume Cory also earns $20,000 of REIT income; c. Disregarding (a)-(b) above, assume the partnership income allocable to Cory is $2,000,000 and the partnership is defined as a specified service trade or business. d. Disregarding (a)-(c) above, assume the partnership income allocable to Cory is $2,000,000, but the partnership is not a specified service trade or business. Also, the partnership pays $600,000 of W-2 wages and the partnership's unadjusted basis in qualified property is $8,000,000.
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A Qualified business income 200000 Taxable income 200000 10000 100000 310000 Qbi lessor of 20 of qbi ... View the full answer
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
Posted Date:
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