### QBI Deduction Eligibility and Amount**Instruction:** Select whether the following taxpayers are eligible for the QBI deduction "Yes" or "No" and the deduction amount. If an answer is zero, enter "0".---#### Taxpayers:1. **Aretha** - **Filing Status:** Married, filing jointly - **Business Involvement:** Shareholder in Soul Corporation (not an S corporation), owning 10% of outstanding stock. - **Income Details:** - Corporation generates $700,000 taxable income. - $70,000 dividend distributed to Aretha. - Total taxable income before QBI deduction: $92,000. - **Eligibility:** No - **QBI Deduction Amount:** $02. **Terri Jones** - **Filing Status:** Single taxpayer - **Business Involvement:** Sole proprietor of a small chain of hair salons called The Bee Hive. - **Business Details:** - No employees; stylists are independent contractors. - Taxpayer identification number: 317-65-4321. - Generated business income: $120,000 in 2020. - Total taxable income before QBI deduction: $132,500. - **Eligibility:** Yes - **QBI Deduction Amount:** [The correct amount needs to be calculated and provided based on deduction rules.]3. **Alice Delvecchio** - **Filing Status:** Married, filing jointly with Chris Delvecchio. - **Business Involvement:** Sole proprietor of D’s Pizza. - Taxpayer identification number: 565-22-4321. - **Income Details:** - Wages paid: $36,000 - Qualified property basis: $67,000 - QBI from the restaurant: $100,000 - **Spouse's Income:** Chris has wages of $250,000. - **Joint Taxable Income:** $364,000, includes $12,000 of qualified dividends before QBI deduction. - **Eligibility:** Yes - **QBI Deduction Amount:** [The correct amount needs to be calculated and provided based on deduction rules.]---**Explanation of Graphs or Diagrams:**There are no graphs or diagrams in this text. The content provided includes entries in a tabulated format, where the eligibility

1). Yes or no QBI Deduction No 0 Explanation :- Because, only pass through entities are…

Eligible QBI deduction Тахраyer Yes or No amount 1. Aretha is a married taxpayer filing jointly and a shareholder in Soul No V Corporation (not an S corporation). She owns 10% of the outstanding stock and the corporation generates $700,000 of taxable income from its business operations and distributes a $70,000 dividend to Aretha. Her total taxable income before the QBI deduction is $92,000. 2. Terri Jones is a single taxpayer and sole proprietor that operates a Yes v small chain of hair salons called The Bee Hive that specialize in obscure hair colors. Her business has no employees since all the stylists operate as independent contractors. The taxpayer identification number of the Bee Hive is 317-65-4321. Terri's business generated business income of $120,000 in 2020. Her taxable income before any QBI deduction is $132,500. 3. Alice Delvecchio is married and files a joint return with her spouse, Yes v Chris Delvecchio. Alice operates a small family restaurant called D's Pizza as a sole proprietor (taxpayer identification number 565- %24 %24

Eligible QBI deduction Тахраyer Yes or No amount 1. Aretha is a married taxpayer filing jointly and a shareholder in Soul No V Corporation (not an S corporation). She owns 10% of the outstanding stock and the corporation generates $700,000 of taxable income from its business operations and distributes a $70,000 dividend to Aretha. Her total taxable income before the QBI deduction is $92,000. 2. Terri Jones is a single taxpayer and sole proprietor that operates a Yes v small chain of hair salons called The Bee Hive that specialize in obscure hair colors. Her business has no employees since all the stylists operate as independent contractors. The taxpayer identification number of the Bee Hive is 317-65-4321. Terri's business generated business income of $120,000 in 2020. Her taxable income before any QBI deduction is $132,500. 3. Alice Delvecchio is married and files a joint return with her spouse, Yes v Chris Delvecchio. Alice operates a small family restaurant called D's Pizza as a sole proprietor (taxpayer identification number 565- %24 %24

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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Thad, a single taxpayer, has taxable income before the QBI deduction of $189,500. Thad, a CPA, operates an accounting practice as a single member LLC (which he reports as a sole proprietorship). During 2021, his proprietorship generates qualified business income of $151,600, W–2 wages of $113,700, and $12,000 of qualified property. Assume the QBI amount is net of the self-employment tax deduction. If required, round any division to two decimal places and use that rounded amount in any future computations. Round your final answer to the nearest dollar. What is Thad's qualified business income deduction?
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