Ashley (a single taxpayer) is the owner of ABC LLC. The LLC (which reports as a soleproprietorship) generates QBI of $900,000 and is not a "specified services" business.ABC paid total W-2 wages of $300,000, and the total unadjusted basis of propertyheld by ABC is $30,000. Ashley's taxable income before the QBI deduction is $740,000(this is also her modified taxable income). What is Ashley's QBI deduction for 2023?(LO.3,, 4)

The Qualified Business Income (QBI) deduction allows eligible taxpayers to deduct up to 20% of their…

Answered: Ashley (a single taxpayer) is the owner…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the tax year sells the first eight lots to eight different buyers for $159,400 each. Dexter's basis in each lot sold is $111,580, and he incurs total selling expenses of $6,376 on each sale. What is the amount of Dexter's capital gain and ordinary income? If required, round your answers to the nearest dollar. Dexter has a realized and recognized gain of $ as a capital gain. of which $ is classified as ordinary income and
Layla has $200,000 of QBI from her neighborhood clothing store (a sole proprietorship). Her proprietorship paid $30,000 in W-2 wages and has $20,000 of qualified property. Layla's spouse earned $50,000 of wages as an employee, and the couple earned $20,000 of interest income during the year. They will be filing jointly and take the standard deduction of $25,100.What is their QBI deduction for 2021? a.$-0-. b.$54,000. c.$40,000. d.$48,980.
Rachel, a single taxpayer, operates a construction business as a sole proprietor. This year, Rachel earned $225,000 of qualified business income after paying $40,000 of wages to her employees. The unadjusted basis of her business property totals $10,000. Rachel's taxable income before the deduction for qualified business income is $212,300. What is the amount of her QBI deduction? Group of answer choices $25,000 $15, 100 $29,900 $42,460 $45,000
Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $180, 000 salary working full time for Angels Corporation. Angels Corporation reported $400,000 of taxable business income for the year (2023). Before considering his business income allocation from Angels and the self-employment tax deduction (if any), Mason's adjusted gross income is $180,000 (all salary from Angels Corporation). Mason claims $50,000 in itemized deductions. Answer the following questions for Mason. Assuming the business income allocated to Mason is income from a specified service trade or business, what is Mason's deduction for qualified business income? Ignore the wage-based limitation when computing the deduction.
Charlotte is a partner in, and sales manager for, CD Partners, a domestic business that is not a "specified services" business. During the tax year, she receives guaranteed payments of $177,400 from CD Partners for her services to the partnership as its sales manager. In addition, her distributive share of CD Partners' ordinary income (its only item of income or loss) was $106,440. What is Charlotte's qualified business income? $fill in the blank 1 ______?
Mark, single, is the sole shareholder of Mark's Tool and Dye, Inc., a tool and dye manufacturing company operating as an S corporation. Mark reports qualified business income of $121,500 and he has no employees. He also has qualified dividend income of $4,400. He has no itemized deductions and claims the standard deduction of $13,850 on his 2023 Form 1040. What is Mark's qualified business income deduction? Mark's qualified business income deduction tA $ 25,180
Aram's taxable income before considering capital gains and losses is $82,000. Determine Aram's taxable income and how much of the income will be taxed at ordinary rates in each of the following alternative scenarios (assume Aram files as a single taxpayer) Required: a. Aram sold a capital asset that he owned for more than one year for a $5,440 gain, a capital asset that he owned for more than one year for a $720 loss, a capital asset that he owned for six months for a $1,640 gain, and a capital asset he owned for two months for a $1,120 loss. b. Aram sold a capital asset that he owned for more than one year for a $2.220 gain, a capital asset that he owned for more than one year for a $2,940 loss, a capital asset that he owned for six months for a $420 gain, and a capital asset he owned for two months for a $2.340 loss c. Aram sold a capital asset that he owned for more than one year for a $2.720 loss, a capital asset that he owned for six months for a $4,640 gain, and a capital asset…
Gina owns all of Cherry Corporation's stock. Cherry pays her a $74,000 salary, which reduces its before-tax profit to $21,000. Cherry distributes all of its after-tax income to its shareholder, Gina. Gina is married, and her spouse receives $82,000 of salary from an unrelated employer. They file jointly, have $31,500 of itemized deductions, and have no dependents. Compute the total income tax that is paid. Ignore payroll taxes. (The tax year is 2022) View the standard deduction amounts. View the 2022 tax rate schedule for the Married filing jointly filing status. Read the requirement. a. Compute the total income tax that would be paid assuming Cherry is an S corporation. Ignore payroll taxes. Begin by calculating taxable income for Gina under this scenario. S corporation income Salaries Adjusted gross income Minus: 74,000 82,000 156,000 Qualified business income deduction Itemized deductions Taxable income 0 31,500 124,500 Now enter the income tax that would be paid by Gina and the…
Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a "specified services" business) that generates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds property with an unadjusted basis of $10,000. Scott is employed by a local school district. Their taxable income before the QBI deduction is $400,100 (this is also their modified taxable income). A. Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2022. B. After providing you the original information in the problem, scott finds out that he will be receiving a $6,000 bonus in December 2022 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction taxable income, and tax liability for 2022.
Aram's taxable income before considering capital gains and losses is $71,000. Determine Aram's taxable income and how much of the income will be taxed at ordinary rates in each of the following alternative scenarios (assume Aram files as a single taxpayer). Required: Aram sold a capital asset that he owned for more than one year for a $5,220 gain, a capital asset that he owned for more than one year for a $610 loss, a capital asset that he owned for six months for a $1,420 gain, and a capital asset he owned for two months for a $1,010 loss. Aram sold a capital asset that he owned for more than one year for a $2,110 gain, a capital asset that he owned for more than one year for a $2,720 loss, a capital asset that he owned for six months for a $310 gain, and a capital asset he owned for two months for a $2,120 loss. Aram sold a capital asset that he owned for more than one year for a $2,610 loss, a capital asset that he owned for six months for a $4,420 gain, and a capital asset he…
Jason and Paula are married. They file a joint return for 2022 on which they report taxable income before the QBI deduction of $239,500. Jason operates a sole proprietorship, and Paula is a partner in the PQRS Partnership. Both are a qualified trade or business, and neither is a "specified services" business. Jason's sole proprietorship generates $187,600 of qualified business income and W-2 wages of $48,800 and has qualified property of $19,500. Paula's partnership reports a loss for the year, and her allocable share of the loss is $32,700. The partnership reports no W-2 wages, and Paula's share of the partnership's qualified property is $10,400. Assume the QBI amount is net of the self-employment tax deduction. What is their QBI deduction for the year? X
Paige had $100,000 of income from wages and $3,650 of taxable interest. Paige also made contributions of $2,300 to a tax-deferred retirement account. Paige has 4 dependents and files as head of household.What is Paige's total income?What is Paige's adjusted gross income?For Paige's filing status, the standard deduction is $18,000. What is Paige's taxable income?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS