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In: Accounting
Danni is a single 30 percent owner of Kolt (a business entity). In the current year,...
Danni is a single 30 percent owner of Kolt (a business entity). In the current year, Kolt reported a $1,000,000 business loss. Answer the following questions associated with each of the following alternative scenarios: (Leave no answer blank. Enter zero if applicable.) Problem 15-55 Part b b. Kolt is organized as an LLC taxed as a partnership. Thirty percent of Kolt’s loss is allocated to Danni. Danni works 20 hours a week on Kolt business activities (she is not considered to be a passive investor in Kolt). Danni has a $400,000 basis in her Kolt ownership interest and she also has a $400,000 at-risk amount in her investment in Kolt. Danni does not report income or loss from any other business activity investments. How much of the $300,000 loss allocated to her from Kolt is Danni allowed to deduct this year?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Danni is a single 30 percent owner of Kolt (a business entity). In the current year,...
Danni is a single 30 percent owner of Kolt (a business entity).
In the current year, Kolt reported a $1,000,000 business loss.
Answer the following questions associated with each of the
following alternative scenarios: (Leave no answer blank. Enter zero
if applicable.) Problem 15-55 Part a a. Kolt is organized as a C
corporation and Danni works 20 hours a week as an employee for
Kolt. Danni has a $200,000 basis in her Kolt stock. How much of
Kolt’s loss...
55. Danni is a single 30 percent owner of Kolt (a business entity). In the current...
55.
Danni is a single 30 percent owner of Kolt (a business entity).
In the current year, Kolt reported a $1,000,000 business loss.
Answer the following questions associated with each of the
following alternative scenarios:
a. Kolt is organized as a C corporation and
Danni works 20 hours a week as an employee for Kolt. Danni has a
$200,000 basis in her Kolt stock. How much of Kolt’s loss is Danni
allowed to deduct this year against her other income?...
AJ is a 30 percent partner in the Trane Partnership, a calendar year-end entity. On January...
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TRUE OR FALSE?The business entity assumption requires that a business be
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Friends Jackie (0.5 percent owner), Jermaine (1 percent owner), Marlon (2 percent owner), Michael (86 percent owner),
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Is there a difference in the "owner" of the company in the perspective of Proprietary, Entity,...
Is there a difference in the "owner" of the company in
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These days, not only single business owner but also partnership business owners are suffering from massive...
These days, not only single business owner but also partnership
business owners are
suffering from massive competition as a result they are compelled
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Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a partnership). Sarah does...
Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a
partnership). Sarah does not do any work for Beehive. Beehive LLC.
reported $600,000 of taxable business income for the year (2020).
Before considering her 50 percent business income allocation from
Beehive and the self-employment tax deduction (if any), Sarah’s
adjusted gross income is $150,000 (all employee salary). Answer the
following questions for Sarah.
What is Sarah’s net investment income tax liability (assume no
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Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a partnership). Sarah does...
Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a
partnership). Sarah does not do any work for Beehive. Beehive LLC.
reported $600,000 of taxable business income for the year (2020).
Before considering her 50 percent business income allocation from
Beehive and the self-employment tax deduction (if any), Sarah’s
adjusted gross income is $150,000 (all employee salary). Answer the
following questions for Sarah.
c. What is Sarah’s self-employment tax
liability?
d. What is Sarah’s additional Medicare tax...
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