Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship

Question:

Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a “specified services” business) that generates qualified business income of $300,000. The proprietorship pays W–2 wages of $40,000 and holds property with an unadjusted basis of $10,000. Scott is employed by a local school district. Their taxable income before the QBI deduction is $381,400 (this is also their modified taxable income). Determine their QBI deduction for 2019.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

South Western Federal Taxation 2020 Corporations, Partnerships, Estates And Trusts

ISBN: 9780357109168

43rd Edition

Authors: William A. Raabe, James C. Young, William H. Hoffman, Annette Nellen, David M. Maloney

See More Books

Question Posted: Sep 18, 2019 01:27 PM

See More Questions

Havel and Petra are married and will file a joint tax return. Havel has W-2 income of $36,152 and Petra has W-2 income of $37,289. What is their tax liability? Determine their tax liability using...
Havel and Petra are married and will file a joint tax return. Havel has W-2 income of $45,588 and Petra has W-2 income of $47,229. What is their tax liability? Determine their tax liability using...
Diego and Molly are married and will file a joint return. Diego earns $300,000 from his single member LLC (a law firm), which the tax law treats as a sole proprietorship. Wages paid by the law firm...
On January 5, Jones Ventures Inc. purchased 40% of the outstanding stock of Pilots Manufacturing Corp. The purchase was 20,000 shares at $10 per share. Jones received dividends from Pilots in the...
Estimate the power required for the operation of Problem 3. Do not forget to consider Figure 25-5.
In An atomic seesaw switch formed by tilted asymmetric SnGe dimers on a Ge (001) surface (Science, 2007, 315, 1696), K. Tomatsu et al. describe the synthesis and operation of a molecular switch....
What is the mirror-image rule?
Donald Transport assembles prestige manufactured homes. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool...
It took 6 seconds for the sound of a whistle to reach an observer 5400 feet away from the whistle. At what rate did the sound travel in feet per minute?
Hotel XYZ is an independent city centre hotel property with 200 rooms. In general its Average Daily rate is approximately 100 throughout the year, and its runs at an average of 65% occupancy. Its...
Donald (a married taxpayer filing jointly) owns a wide variety of commercial rental properties held in a single member LLC. Donalds LLC reports rental income of $1.5 million. The LLC pays no W2...
Stella Watters is a CPA and operates her own accounting firm (Watters CPA LLC). As a single member LLC, Stella reports her accounting firm operations as a sole proprietor. Stella has QBI from her...
Excerpts from the 31 December financial statements of Tungston Ltd., before any corrections: After these financial statements were prepared, but before they were issued for 20X7, a routine review...
Maybelline Chuck own blackacre as joint tenants with rights of survivorship black acre consists of 100 acres of land on which two houses are situated. Chuck began farming the 100 acres. Mabel moved...
Next year, a share of stock will pay an annual dividend of $2.50 (D1), and that this dividend is expected to grow by $0.16 in each future year (i.e., $2.66 in Year 2, $2.82 in Year 3, $2.98 in Year...
You manage a stock portfolio worth $ 5 4 million with a beta of 1 . 7 . You want to hedge the risk of a stock market downturn by using S&P 5 0 0 index futures contracts with a contract multiplier of...
i) Let M and N are two events such that, P(M) = 0.8, P(N) = 0.135, P(MN)=0.2. Calculate the probability, P(MC\ NC). ii) A random experiment indicates that P (E1) = 0.12 and P (E2) = 0.14. Given that...
Theo Corporation entered into a contract with Maddon Company to sell Maddon goods for $200,000. About a week later, Maddon ordered additional goods and the two companies agreed to a $50,000 price....
The manager for retail customers, Katie White, wants to hear your opinion regarding one business offer she has received from an entrepreneur who is starting a mobile phone app called Easy Money. The...
Marcellus Jackson, the CFO of Mac, Inc., notices that the tax liability reported on Macs tax return is less than the tax expense reported on Macs financial statements. Provide a letter to Jackson...
Marcellus Jackson, the CFO of Mac, Inc., notices that the tax liability reported on Macs tax return is less than the tax expense reported on Macs financial statements. Provide a letter to Jackson...
Define the terms temporary difference and permanent difference as they pertain to the financial reporting of income tax expenses. Describe how these two book-tax differences affect the gap between...
PQR Supermarket purchases a specific type of cereal throughout the month of February 2023. The purchase and sales data for the month are as follows: February 1st: Beginning inventory - 100 units at...
in forecasting business figures for the coming year, Ling- Poi's owner is including planned purchases of $22000, and an initial markup percentage of 53%. What is Ling-Poi's cost of purchases figure?
How prepare a cover letter for accounting and payroll job posting? What include that responds specifically to the key information in accounting and payroll posting?

Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship

Question:

Step by Step Answer:

Because Scott and Lauras taxable income before the QBI deduction exceeds 321400 the W2 WagesCapital ...View the full answer

South Western Federal Taxation 2020 Corporations, Partnerships, Estates And Trusts

Students also viewed these Business questions