Question 2 (30 points) dependents. They file their taxes jointly, and use the standard deduction. They...

 

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Question 2 (30 points) dependents. They file their taxes jointly, and use the standard deduction. They present the Clay and Mary Smith are married. Clay is 35 while Mary is 39. Mary is blind. They have no following information for 2019: Wages earned Rental income, net Annuities received (total) IRA contribution Pass-through partnership loss Self-employment taxes paid $ 113,900 8,300 20,000 6,000 22,400 7,200 Business income, net Workers' compensation Compensatory damages. Interest on education loan Long-term capital gain $ 51,000 5,300 9,100 2,400 1,800 restrictions. Mary had purchased the annuity in 2014 for $210,000. The annuity pays $20,000 For the pass-through partnership loss, ignore basis, at-risk, and passive loss annually for 15 years. Clay is still paying off the education loan that he used to fund qualified education. Assuming that Clay's qualified business income (QBI) is $51,000 from running a bike shop, what is their tax liability for 2019? Make sure to show ALL of your work, and any support for any decisions you may make. Question 2 (30 points) dependents. They file their taxes jointly, and use the standard deduction. They present the Clay and Mary Smith are married. Clay is 35 while Mary is 39. Mary is blind. They have no following information for 2019: Wages earned Rental income, net Annuities received (total) IRA contribution Pass-through partnership loss Self-employment taxes paid $ 113,900 8,300 20,000 6,000 22,400 7,200 Business income, net Workers' compensation Compensatory damages. Interest on education loan Long-term capital gain $ 51,000 5,300 9,100 2,400 1,800 restrictions. Mary had purchased the annuity in 2014 for $210,000. The annuity pays $20,000 For the pass-through partnership loss, ignore basis, at-risk, and passive loss annually for 15 years. Clay is still paying off the education loan that he used to fund qualified education. Assuming that Clay's qualified business income (QBI) is $51,000 from running a bike shop, what is their tax liability for 2019? Make sure to show ALL of your work, and any support for any decisions you may make.

Answer rating: 100% (QA)

Wages earned 1000 Rental income net 5300 Annuities received total 20000 IRA contributio... View the full answer