Question

In: Accounting

[5] Lana and Luke are married and have a taxable income of $305,000. Their share of...

[5] Lana and Luke are married and have a taxable income of $305,000. Their share of the income from an accounting partnership is $250,000. The accounting partnership pays a total of $90,000 in W-2 wages. Under Sec. 199A, what is their deductible amount for the partnership?
A. $0 B. $50,000 C. $125,000 D. $61,000


<A9> 2020 Gleim Publications Inc. QBI 4101 051720 1
[6] Kevin, a single taxpayer, has a taxable income of $315,000. His share of the income from a law firm LLC is $50,000, and his share of W-2 wages is $70,000. Under Sec. 199A, what is Kevin’s deductible amount for the law firm LLC?
A. $0 B. $10,000 C. $35,000 D. $315,000


[7] The Sec. 199A deduction is a below-the-line deduction.
A. True. B. False.


[8] The Sec. 199A deduction is available to taxpayers who have qualified business income from qualified entities, including sole proprietorships, C corporations, S corporations, partnerships, trusts, and estates.
A. True. B. False.

Solutions

Expert Solution

[5] Lana and Luke are married and have a taxable income of $305,000. Their share of the income from an accounting partnership is $250,000. The accounting partnership pays a total of $90,000 in W-2 wages. Under Sec. 199A, what is their deductible amount for the partnership?
Answer : A. $0


<A9> 2020 Gleim Publications Inc. QBI 4101 051720 1
[6] Kevin, a single taxpayer, has a taxable income of $315,000. His share of the income from a law firm LLC is $50,000, and his share of W-2 wages is $70,000. Under Sec. 199A, what is Kevin’s deductible amount for the law firm LLC?
Answer : B. $10,000


[7] The Sec. 199A deduction is a below-the-line deduction.
Answer : A. True.

[8] The Sec. 199A deduction is available to taxpayers who have qualified business income from qualified entities, including sole proprietorships, C corporations, S corporations, partnerships, trusts, and estates.
Answer : A. True.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

In 2019, Lisa and Fred, a married couple, have taxable income of $300,000. If they were...
In 2019, Lisa and Fred, a married couple, have taxable income of $300,000. If they were to file separate tax returns, Lisa would have reported taxable income of $200,000 and Fred would have reported taxable income of $100,000. A- What is the couple’s marriage penalty or benefit? (Enter a penalty as a positive and a benefit as a negative) n 2019, Jasmine and Thomas, a married couple, have taxable income of $145,000. If they were to file separate tax returns,...
Lana and Rey are married, live in Berkeley California, and have a 12 year old dependent...
Lana and Rey are married, live in Berkeley California, and have a 12 year old dependent child named Del. The two have wages of $ 90,000 (Lana) and $ 85,000 (Rey) during the calendar year 2019 with total state income tax withholding of $16,200, total federal income tax withholding $ 35,000, total social security withholding of $ 10,850, and total medicare withholding of $2,538. Lana has interest income of $ 4,300 for 2019 and Lana and Rey have the following...
Lana and Rey are married, live in Berkeley California, and have a 12 year old dependent...
Lana and Rey are married, live in Berkeley California, and have a 12 year old dependent child named Del.  The two have wages of $ 90,000 (Lana) and $ 85,000 (Rey) during the calendar year 2019 with total state income tax withholding of  $16,200, total federal income tax withholding $ 35,000, total social security withholding of $ 10,850, and total medicare withholding of $2,538.   Lana has interest income of $ 4,300 for 2019 and Lana and Rey have the following gains and...
Roger and Meredith have been married for several years. Their taxable income for 2018 was $228,700....
Roger and Meredith have been married for several years. Their taxable income for 2018 was $228,700. They had AGI of $262,500 which included dividend income of $22,750. Compute their tax (show your work). Now assume that Roger is single. Compute his tax (show your work).
John, a single taxpayer, has taxable income of $305,000. He owns a qualified sole proprietorship that...
John, a single taxpayer, has taxable income of $305,000. He owns a qualified sole proprietorship that generated $100,000 of qualified business income (QBI) and paid no wages. The sole proprietorship has a qualified property with an unadjusted basis of $50,000. Under Sec. 199A, what is the deductible amount John can claim for the sole proprietorship? $10,000 $61,000 $50,000 $1,250
Jack and Jill, married couple, have taxable income of $395,000. Jack owns 100% of a S...
Jack and Jill, married couple, have taxable income of $395,000. Jack owns 100% of a S Corporation, which runs a successful burger restaurant. The S Corp has the following activity.  How much is the IRC 199A deduction: Ordinary Income of $500,000 W-2 Wages paid of $120,000 Original cost of qualified property of $400,000
2015 Tax Rates Tax Rate Single Married Filing Jointly Ordinary Income Taxable Income over To Taxable...
2015 Tax Rates Tax Rate Single Married Filing Jointly Ordinary Income Taxable Income over To Taxable Income over To 10% $0 $9,225 $0 $18,450 15% 9,225 37,450 18,450 74,900 25% 37,450 90,750 74,900 151,200 28% 90,750 189,300 151,200 230,450 Instructions: Round your final answer and all intermediate calculations to the nearest whole number. Use the tax table to compute the taxes of someone who has a spouse and three children, has income of $135,000, and takes the standard deduction. The...
In 2020, Tom and Amanda Jackson (married filing jointly) have $300,000 of taxable income before considering...
In 2020, Tom and Amanda Jackson (married filing jointly) have $300,000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.) On May 12, 2020, they sold a painting (art) for $122,500 that was inherited from Grandma on July 23, 2018. The fair market value on the date of Grandma’s death was $96,250 and Grandma’s adjusted basis of the painting was $27,500. They applied a long-term capital loss carryover from...
In 2020, Tom and Amanda Jackson (married filing jointly) have $228,000 of taxable income before considering...
In 2020, Tom and Amanda Jackson (married filing jointly) have $228,000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.) On May 12, 2020, they sold a painting (art) for $113,500 that was inherited from Grandma on July 23, 2018. The fair market value on the date of Grandma’s death was $91,750 and Grandma’s adjusted basis of the painting was $25,700. They applied a long-term capital loss carryover from...
In 2018, Tom and Amanda Jackson (married filing jointly) have $200,000 of taxable income before considering...
In 2018, Tom and Amanda Jackson (married filing jointly) have $200,000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.) On May 12, 2018, they sold a painting (art) for $110,000 that was inherited from Grandma on July 23, 2016. The fair market value on the date of Grandma’s death was $90,000 and Grandma’s adjusted basis of the painting was $25,000. They applied a long-term capital loss carryover from...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT