**Business Overview:**Barbara Jones, a single individual, owns and operates the following non-specified service businesses in 2023:1. **Marigold Decorations** - QBI: $98,000 - W-2 Wages: $12,600 - Property: $02. **Barbara’s Cookies** - QBI: $64,000 - W-2 Wages: $0 - Property: $03. **Barbara’s Snow Supplies** - QBI: ($45,200) - W-2 Wages: $4,900 - Property: $0**Tax Information:**- **Modified Taxable Income:** $401,000Barbara is evaluating whether she can ignore the loss from Barbara’s Snow Supplies in calculating her Qualified Business Income (QBI) deduction.- **Decision:** No (she cannot ignore the loss)- **Combined QBI Deduction:** $116,800This analysis helps to determine Barbara's eligibility in including losses from one of her businesses in her overall QBI deduction.

Taxable income is the portion of an existent's or business's income that's subject to taxation by…

Answered: Barbara Jones, single, owns and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A 89. Subject:- accounting
1. Steve is married filing jointly with his wife Nancy and operates a business as a sole proprietor. His business is a small tax and accounting business where he has two employees who are paid a total of $90,000in wages. The business has no significant assets. In 2023, Steve reported qualified business income of $225,000and the taxable income before the QBI deduction of $229,000. What is the amount of Steve and Nancy's QBI deduction for 2023?
Evan, a single individual, operates a service business that earned $110,000 (after all applicable deductions) in 2021. The business has no tangible property and paid no W-2 wages. Required: b. Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $175,000. * I only need Requirement B to be solved
Here is another question: – Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2018. They present you with the following information: Bart Elizabeth Joint Salary $38,000 Business net income $110,000 Interest income $400 $1,200 $2,200 Deductions for AGI $2,400 $14,000 Medical Expenses $10,427 $3,358 State income tax $900 $1,800 Real Estate tax $3,800 Mortgage Interest $4,200 Unreimbursed employee expenses $1,200 If they file separately, Bart and Elizabeth will split the real estate tax and mortgage interest deductions equally. Write Bart and Elizabeth a letter in which you make and explain a recommendation on filing status for 2018. Bart and Elizabeth reside at 2003 highland Drive, Durham, NC 27707.
Amy earns an income of 50,000 this year as an employee of rooster enterprises. She pays the following amounts during the year: Contribution to Traditional IRA : 5000 PreTax Cuts and Jobs Act Alimony she paid to her ex husband: 10,000 Medical expenses: 6000 What is Amy's Adjusted Gross Income? (AGI) a. 29000 b. 34000 c. 35000 d. 39000
Ekiya, who is single, has been offered a position as a city landscape consultant, the position pays $127,400 in wages. Assume Ekiya has no dependents. Ekiya deducts the standard deduction instead of itemized deductions, she is not eligible for the quailed business income deduction, and she did not make any charitable donations.
Subject:
None
Tim, a single taxpayer, operates a business as a single-member LLC. In 2023, his LLC reports business income of $367,500 and business deductions of $643, 125, resulting in a loss of $ 275,625. What are the implications of this business loss? a. Tim has an excess business loss of $fill in the blank 1 44,000. b. Can this business loss be used to offset other income that Tim reports? If so, how much? If not, what happens to the loss? Tim may use Sfill in the blank 2 289,000 of the $333,000 LLC business loss, to offset nonbusiness income. The excess business loss is treated as part of Tim's NOL carryforward.
During 2018, Iona Carr got divorced. In 2023, she presents the following information: Wages earned of $61,382 Alimony received of $9,600 Lawsuit settlement proceeds for personal injuries suffered of $18,000 Interest from a state municipal bonds of $46 Dividends received of $5,510, of which $4,050 were qualified dividends If there are no other relevant transactions, what is Iona Carr's 2023 adjusted gross income?
Jo and Larry own a small office building in Austin that they lease out. This year rental income from the office building was $120,000 and rental expenses were $80,000. On what Form 1040 schedule would Jo and Larry report their rental income and expenses? O Schedule E O Rental expenses are inherently personal and therefore not deductible. O Schedule C
None

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