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Katie is a shareholder in Engineers One, a civil engineering company. This year, Katie's share of...

Katie is a shareholder in Engineers One, a civil engineering company. This year, Katie's share of the net business income from Engineers. One is $200,000. Assume that Katie's allocation of wages paid by Engineers One to it's employees is $300,000 and her allocation of Engineers One's qualified property is $150,000 (unadjusted basis of equipment , all purchased within the past three years) Assume Katie, has no other business income, no capital gains or qualified dividends, and that her taxable income before the deduction for qualified business income is $400,000.

Required:

a. Calculate Katie's deductions for qualified business income.

b. Assume the same facts as earlier, except Katie's net business income from Engineers One is $400,000 and taxable income before the deductable for qualified business income is $350,000.

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ekkarill92 answered 1 year ago
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