Claire is a self-employed individual who owns and runs Claire's Creations LLC. In 2016, she had $225,000

Question:

Claire is a self-employed individual who owns and runs Claire's Creations LLC. In 2016, she had $225,000 in net self-employment earnings, including a deduction for 50% of self-employment tax, prior to any Keogh deduction. Claire has a defined contribution, stock bonus Keogh plan. What is the highest deductible Keogh contribution Claire can make for the 2016 tax year? Assume no excess contribution carryover from prior years.
a. $56,250
b. $225,000
c. $52,000
d. $45,000
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

South Western Federal Taxation Individual Income Taxes 2017

ISBN: 9781305873988

40th Edition

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

Question Posted: