Is this statement True or False?
Q: Whitley and Maggie Sweeney are a married couple filing jointly. They have no children and report the…
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Q: IS utA D wn
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Q: James has just been audited by the IRS and, as a result, has been assessed a substantial deficiency…
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A: Basis in property: The amount of investment made by an individual in acquiring a property is called…
Q: Chris and Karla are married and will file jointly. Chris earns $300,000 from his CPA firm. He…
A: QBI stands for Qualifies business Income which implies the total amount of all the qualified items…
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A: As per the rules of partnership, even if a person in a limited partnership does not materially…
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A: A business expenditure refers to costs incurred in the ordinary course of business.
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A: Business - Making a living or earning money through the production, acquisition, and sale of items…
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A: A lump-sum distribution is the release or payment of a program participant's entire benefit from all…
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Q: Lewis, age 26, and Oneida, age 25, are married and will file a joint return. They cannot be claimed…
A: Please fallow the answer below: 3) True Detailed explanation for the above solution : If certain…
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Q: Ben and Molly are married and will file jointly. Ben generates $300,000 of qualified business income…
A: QBI - Qualified Business Income Deduction is an allowed tax deduction which allows eligible sole…
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A: Tax liability refers to the legal obligation of an individual, business, or entity to pay taxes to…
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A: The correct answer is "D. Either both use itemized deductions, or both use standard deduction".This…
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A: Given are the details provided in the question: Total unadjusted basis of property of AB LLC =…
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A: Taxable income is that income which the business is liable is pay to the government.
Is this statement True or False?
The tax charged on various forms of legal business organizations varies. The partnership is the legal form of business entity but the entire net income is not charged for the taxation purpose under the Federal taxation system.
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- Jane and Ben are married and usually file a joint return. They live in a separate property state (rather than a community property state). Jane is a partner in a law firm and typically generates income of $162,000. Ben is a grade school teacher with wage income of $75,000. The couple has investment income that is less than their standard deduction. With enactment of the deduction for qualified business income, the couple is wondering if they should continue to file as married filing jointly or instead use the married filing separately status. Why do they wonder this, and what advice would you offer them and why? If each spouse files separately, Jane's income is close to the threshold relevant for , such as the law firm. The use of the married filing jointly filing status will result in QBI deduction. Therefore, from a tax viewpoint, it would probably benefit Jane and Ben to file .Sebastian and Sunny are married. They are currently contemplating filing as married filing separately. Under current law, spouses filing separately must A) use the standard deduction if the other spouse uses the itemized deductions or vice versa. B) both use standard deduction. C) both use itemized deductions. D) either both use itemized deductions, or both use standard deduction.Pedro Rodríguez Cruz and Mónica Santiago Del Valle, are married under the community property regime and file their income tax return as married filing jointly. Pedro's date of birth is January 1, 1950 and Monica's is February 1, 1955. The couple's address is Urb. Bella Vista, Calle Monte #1, San Juan, PR 00910. Both are citizens of the United States. United States of America, residents of Puerto Rico, have not generated income outside of Puerto Rico, and are not military. During taxable year 2021, they carried out the following activities.Pedro Rodriguez, dba, Medical Equipment & SuppliesPedro, merchant (Salesperson-retail), owns a business on his own (“sole proprietorship”), Medical Equipment & Supplies dedicated to the sale and distribution of medical equipment. The business is located in San Juan. Pedro began operations on January 2, 2012 and works there about 40 hours a week. The result of its operations, under the accrual method and on a tax basis, during 2021 was as…
- Lewis, age 26, and Oneida, age 25, are married and will file a joint return. They cannot be claimed as dependents by another taxpayer. Lewis and Oneida have no children or other dependents. Both work and neither are full-time students. Lewis earned wages of $15,400 and Oneida earned wages of $5,600. Lewis and Oneida are U.S. citizens and have valid Social Security numbers. Lewis and Oneida have investment income of $5,000. 4. The maximum amount of investment income that Lewis and Oneida can have to qualify for the Earned Income Tax Credit is $ ____________.Lewis, age 26, and Oneida, age 25, are married and will file a joint return. They cannot be claimed as dependents by another taxpayer. Lewis and Oneida have no children or other dependents. Both work and neither are full-time students. Lewis earned wages of $10,400 and Oneida earned wages of $5,600. Lewis and Oneida are U.S. citizens and have valid Social Security numbers. Lewis and Oneida have investment income of $5,000. 3. Lewis and Oneida are eligible to claim the Earned Income Tax Credit (EITC) without a qualifying child. Sebastian and Ashley Miller are married and always file Married Filing Jointly. Sebastian earned $32,000 in wages and Ashley earned $24,000 in wages. The Millers paid all the cost of keeping up a home and provided all the support for their two children, Laura and Timothy, who lived with them all year. Laura is 14 years old and Timothy turned 17 in November 2022. Sebastian and Ashley did not have enough deductions to itemize,…parts a. and b. are 2 parts of the same question and should not be separated. TIA!
- Jackie derives its sole income from Zhakie. Said income is normally subject to withholding taxes. Jackie found out that there is a statute providing tax exemption. Knowing he is within the scope of the exemption, Jackie asked Zhakie to return the previously withheld amount. Zhakie refuses to do so since the related expense might be disallowed if it fails to withhold. Who has the responsibility to prove that Jackie is exempted? Zhakie BIR Congress JackieWhy did the IRS deny the political rival’s request to see the Carpenters tax return?Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. Rick and Cindy Davis are married and file a joint return. They live at 3223 Taccone Ave., Apt. 37, Medford, MA 02155. Rick is an elementary school teacher in the Medford Public School system and Cindy is currently a homemaker after losing her job in late 2019. Cindy's social security number is 412-34-5671 (date of birth 10/11/1981) and Rick's is 412-34-5670 (date of birth 3/19/1979). Rick's W-2 contained the following information: Wages (box 1) Federal W/H (box 2) = Social security wages (box 3) = $ 70,245.55 $ 5,924.43 = $ 70,245.55 Social security W/H (box 4) = $ 4,355.22 Medicare wages (box 5) = $ 70,245.55 Medicare W/H (box 6) = $ 1,018.56 Rick and Cindy have interest income of $237 from a savings account at Boston…
- • Jeff, age 68 and Claire, age 63 elect to file Married Filing Jointly. Neither taxpayer is blind. • Jeff is retired. He received Social Security benefits and a pension. • Jeff and Claire's daughter Shelby, age 19, is a full-time college student in her second year of study. She is pursuing a degree in foreign studies and does not have a felony drug conviction. She received a Form 1098-T for 2022. Box 7 was not checked on her Form 1098-T for the previous tax year. • Shelby spent the summer at home with her parents but lived in an apartment near campus during the school year. • Shelby received a scholarship and the terms require that it be used to pay tuition. Jeff and Claire paid the cost of Shelby’s tuition and course-related books in 2022 not covered by scholarship. They paid $120 for a parking sticker, $5,500 for a meal plan, $750 for textbooks purchased at the college bookstore, and $100 for access to an online textbook. • Jeff and Claire…Joe and Sunny intend to enter into a business venture together and decided that a corporation would be a desirable entity choice for federal income tax purposes. The corporation is named JS Inc. (“JS”). For newly established JS, Joe intends to contribute Property A with a fair market value (“FMV”) of $800 and basis of $300, subject to debt of $200. Sunny intends to contribute cash of $800. JS is elected to be treated as an S corporation for federal income tax purposes. 1. Provide Joe’s basis in JS upon contribution (i.e., Year 0) of Property A. 2. Provide Sunny’s basis in JS upon contribution (i.e., Year 0) of cash. 3. Provide JS’s basis in Property A and cash immediately after the contribution. 4. Assuming Joe’s and Sunny’s basis in the JS stock remain the same after the contributions for Year 1, determine Joe’s and Sunny’s basis when JS distributes $400 of cash to Joe and Sunny. 5. Assume the following: 1) there are no AAA, OAA, and AEP; 2) the debt of $200 is still treated as a loan…Hello! I need your help to resolve this problem. I have an answer for the first question, but I not sure if it's correct. Thank you for your help, in advance. Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified services" business) that reports net income of $300,000. The proprietorship pays W–2 wages of $40,000 and holds property with an unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI deduction is $375,000 (this is also their modified taxable income). What is their tentative QBI based on the W–2 Wages/Capital Investment Limit?$ Determine their allowable QBI deduction.$
