25 Bill and Mary filed a joint Federal income tax return this year. Mary owns a 30% interest in MAJIC Partnership, a women’s dress boutique. Mary’s share of the partnership’s net income is $280,000. Her shares of the partnership’s W–2 wages and unadjusted basis of depreciable property are $100,000 and $300,000, respectively. What is Bill and Mary’s maximum QBI deduction if their total taxable income is $300,000? Since their total taxable income is less than the threshold limit of $326,600, the deduction is calculated as 20%. $280,000 * 20% (QBI deduction) = $56,000 What is the maximum QBI deduction if Bill and Mary’s total taxable income is $450,000? Since $450,000 exceeds the threshold limit of $326,600, and above $100,000 over in the case of filing joint returns, the limitation phase is applicable.
Check my work.
25 Bill and Mary filed a joint Federal income tax return this year. Mary owns a 30% interest in MAJIC
What is Bill and Mary’s maximum QBI deduction if their total taxable income is $300,000?
Since their total taxable income is less than the threshold limit of $326,600, the deduction is calculated as 20%. $280,000 * 20% (QBI deduction) = $56,000
What is the maximum QBI deduction if Bill and Mary’s total taxable income is $450,000?
Since $450,000 exceeds the threshold limit of $326,600, and above $100,000 over in the case of filing joint returns, the limitation phase is applicable.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
