Bill, Mary, and Joe are 1/3 partners in an unincorporated business. They are each married and each files their tax return as married filing jointly. The business generates 1,200,000 of business income. Overall, the business has 250,000 of W-2 wages and has $450,000 of capital. Bill's modified taxable income is $300,000, Mary's is $372,100, and Joe's is $1,000,000. What are each of their qualified business deduction for the year?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bill, Mary, and Joe are 1/3
partners in an unincorporated
business. They are each married
and each files their tax return as
married filing jointly. The business
generates 1,200,000 of business
income. Overall, the business has
250,000 of W-2 wages and has
$450,000 of capital. Bill's modified
taxable income is $300,000,
Mary's is $372,100, and Joe's is
$1,000,000. What are each of
their qualified business deduction
for the year?
Transcribed Image Text:Bill, Mary, and Joe are 1/3 partners in an unincorporated business. They are each married and each files their tax return as married filing jointly. The business generates 1,200,000 of business income. Overall, the business has 250,000 of W-2 wages and has $450,000 of capital. Bill's modified taxable income is $300,000, Mary's is $372,100, and Joe's is $1,000,000. What are each of their qualified business deduction for the year?
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