Donald owns a wide variety of commercial rental properties held in a single member LLC. Donalds LLC
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Donald owns a wide variety of commercial rental properties held in a single member LLC. Donald’s LLC reports rental income of $1,500,000. The LLC pays no W–2 wages; rather, it pays a management fee to an S corporation that Donald controls. The management company pays W–2 wages, but it reports no income (or loss). Donald’s total unadjusted basis of the commercial rental property is $10,000,000. Donald’s taxable income before the QBI deduction (and his modified taxable income) is $2,000,000. What is Donald’s QBI deduction for 2019?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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