The taxpayer is a self - employed contractor who builds residences and had gross income of
Question:
The taxpayer is a self−employed contractor who builds residences and had gross income of $2.2M. the net income attributed to the business was $450K. Additionally. This taxpayer has a team of 10 full−time employees, as well as contractors who perform the design and build projects. The business has $150K of wages for the tax year, and the taxpayer is organized as a single−member LLC and has filed as Married Jointly. Is the following statement regarding QBI relevant to this situation?
a) Wages may be a limiting factor when computing QBI
b) If the taxpayer changes to a C corporation, he or she will not be entitled to any QBI deduction
c) The taxpayer may be able to amend their 2019 US Form 1040 and take the QBI deduction
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill