Question

In: Accounting

partner a, a single taxpayer, is one of two parties in a small business. as such,...

partner a, a single taxpayer, is one of two parties in a small business. as such, she recieves pass through income that is taxed at her personal tsx rates. after all adjustments and dedictions have been made, including the 20% wualified business income deduction, she is preparing to calculate her taxes owed for the year.
a. find the marginal tax rate for the following levels of sole proprietorship earnings before taxes 14,500;59,800;88,200;155,000;252,000;449,000,1.3 million

Solutions

Expert Solution

Please refer following image for the solution:


Related Solutions

Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is...
Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2020, the business pays $60,000 of W–2 wages, has $150,000 of qualified property, and generates $200,000 of qualified business income. Susan also has a part-time job earning wages of $11,100 and receives $3,300 of interest income. Her standard deduction is $12,400. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's tentative QBI based...
Jansen, a single taxpayer, owns and operates a restaurant (as a sole proprietorship). The business is...
Jansen, a single taxpayer, owns and operates a restaurant (as a sole proprietorship). The business is not a specified services business. In 2020, the business pays $125,000 in W-2 wages, has $187,500 of qualified property, and $437,700 in net income (all of which is qualified business income). Jansen has no other items of income or loss and will take the standard deduction. What is Jansen’s qualified business income deduction?
Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is...
Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2020, the business pays $60,000 of W–2 wages and reports qualified business income of $200,000. Susan also has a part-time job earning wages of $11,000 and receives $3,200 of interest income. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's tentative QBI based on the W–2 Wages/Capital Investment Limit? Determine Susan's allowable QBI...
Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is...
Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2019, the business pays $60,000 of W–2 wages and generates $200,000 of qualified business income. Susan also has a part-time job earning wages of $11,000 and receives $3,200 of interest income. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's tentative QBI based on the W–2 Wages/Capital Investment Limit? Determine Susan's allowable QBI...
Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is...
Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a specified services business. In 2020, the business pays $60,000 in W-2 wages, has $150,000 of qualified property, and $200,000 in net income (all of which is qualified business income). Susan also has a part-time job earning wages of $13,600, receives $3,400 of interest income, and will take the standard deduction. What is Susan’s qualified business income deduction?
Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is...
Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2020, the business pays $60,000 of W–2 wages, has $150,000 of qualified property, and generates $200,000 of qualified business income. Susan also has a part-time job earning wages of $11,100 and receives $3,300 of interest income. Her standard deduction is $12,400. 1.What is Susan's tentative QBI based on the W–2 Wages/Capital Investment Limit? 2. Determine Susan's allowable QBI...
Business Law - Third Parties Burning Lake Tire Company is a small business owned primarily by...
Business Law - Third Parties Burning Lake Tire Company is a small business owned primarily by the Jones family of Cleveland, Ohio. Bob Jones, President of Burning Lake Tire, signed an agreement with Scotti Commercial to lease a machine designed to bend exhaust pipes so that mufflers could be fitted into different makes of cars. The lease was a pre-printed contract drafted by Scotti and contained lots of standard language (aka, “small print”). Specifically, the lease contained the following language:...
You are an audit partner in a Small CPA firm. One of the audit managers who...
You are an audit partner in a Small CPA firm. One of the audit managers who works for you, Alan Robinson, has emailed you about a prospective audit client, Stanley Thornton, with whom he ahs been talking. Mr. Robinson is concerned because the prospective client has made it clear that if he hires your firm he will expect your firm to be his advocate and always act in his best interests. In other words, Mr. Thornton expects your firm to...
Your small remodeling business has two work vehicles. One is a small passenger car used for...
Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles. An upgraded car will get...
Your small remodeling business has two work vehicles. One is a small passenger car used for...
Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles. An upgraded car will get...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT