Sott and Laura are married and will file a joint tax return. Scott has a sole...
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Sott and Laura are married and will file a joint tax return. Scott 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 qualified property with an unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QB1 deduction is $389,800 (this is also their modified taxable income). a. Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2021. QBI deduction 36,000 Taxable income Tax liability b. After providing you with the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in December ) 2021 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction, taxable income, and tax liability for 2021. QBI deduction Taxable income Tax liability c. What is the marginal tax rate on Scott's bonus? Enter the percent to one decimal place. Sott and Laura are married and will file a joint tax return. Scott 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 qualified property with an unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QB1 deduction is $389,800 (this is also their modified taxable income). a. Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2021. QBI deduction 36,000 Taxable income Tax liability b. After providing you with the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in December ) 2021 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction, taxable income, and tax liability for 2021. QBI deduction Taxable income Tax liability c. What is the marginal tax rate on Scott's bonus? Enter the percent to one decimal place.
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Answer rating: 100% (QA)
a Qualified business income QBI 300000 20 OF QBI 20 x 300000 60000 W2 ... View the full answer
Related Book For
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
Posted Date:
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