Exercise 15-20 (Algorithmic) (LO. 3, 4) Jason and Paula are married. They file a joint return for 2021 on which they report taxable income before the QBI deduction of $207,000. 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 $176,800 of qualified business income and W-2 wages of $44,400 and has qualified property of $12,000. Paula's partnership reports a loss for the year, and her allocable share of the loss is $31,300. The partnership reports no W-2 wages, and Paula's share of the partnership's qualified property is $8,800. Assume the QBI amount is net of the self-employment tax deduction. What is their QBI deduction for the year? $4
Exercise 15-20 (Algorithmic) (LO. 3, 4) Jason and Paula are married. They file a joint return for 2021 on which they report taxable income before the QBI deduction of $207,000. 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 $176,800 of qualified business income and W-2 wages of $44,400 and has qualified property of $12,000. Paula's partnership reports a loss for the year, and her allocable share of the loss is $31,300. The partnership reports no W-2 wages, and Paula's share of the partnership's qualified property is $8,800. Assume the QBI amount is net of the self-employment tax deduction. What is their QBI deduction for the year? $4
Chapter15: Taxing Business Income
Section: Chapter Questions
Problem 18CE
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Transcribed Image Text:Exercise 15-20 (Algorithmic) (LO. 3, 4)
Jason and Paula are married. They file a joint return for 2021 on which they report taxable income before the QBI deduction of $207,000.
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 $176,800 of qualified business income and W-2 wages of $44,400 and
has qualified property of $12,000. Paula's partnership reports a loss for the year, and her allocable share of the loss is $31,300. The
partnership reports no W-2 wages, and Paula's share of the partnership's qualified property is $8,800.
Assume the QBI amount is net of the self-employment tax deduction.
What is their QBI deduction for the year?
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ISBN:
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Author:
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