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.

Answer rating: 100% (QA)

A Qualified business income 200000 Taxable income 200000 10000 100000 310000 Qbi lessor of 20 of qbi ... View the full answer