Rachel, a single taxpayer, operates a construction business as a sole proprietor. This year, Rachel earned $225,000 of qualified business income after paying $40,000 of wages to her employees. Theunadjusted basis of her business property totals $10,000. Rachel's taxable income before the deduction for qualified business income is $212,300. What is the amount of her QBI deduction? Groupof answer choices $25,000 $15, 100 $29,900 $42,460 $45,000

Qualified business income deduction i.e QBI is the tax deduction that is applicable for eligible…

Answered: Rachel, a single taxpayer, operates a…

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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Alma Algonquin is a single taxpayer and operates Alma's Almond Products as a sole proprietor. For 2020, Alma's Almond Products reports $65,000 in gross receipts from business, and business expenses of $112,000. For her 2020 individual tax return, Alma reports these additional personal items: Interest Income LT Capital Gain LT Capital Loss Mortgage Interest State & Local Taxes $5,000 $18,000 ($4,100) $7,900 $8,100 A) Based on the above information, determine Alma Algonquin's taxable income for 2020. B) Based on the above information, determine Alma Algonquin's Net Operating Loss for 2020.
During the year, Maxine pays the following amounts related to her residence: Mortgage interest $8,000 Real estate taxes 4,000 Painting of exterior 2,000 Utilities 3,400 New roof 10,000 She also paid the following for her daughter's house: Real estate taxes (owned and used by daughter) $1,500 a. Which expenses are deductible by Maxine if she is eligible to itemize her deductions? b. Calculate the total dollar amount. c. Are the deductions "For" or "From" AGI?
Chanda is employed in a local accounting company (ABC accounting) that specialises in providing tax return to individuals. On 1st April, 2020 ABC provided a car for Chanda to use both for business and private purposes. ABC Purchased the car on 1st January, 2020 for the amount of $28,000. During the year, repairs and maintenance costs amounted to $2,000. Chanda contributes $1,000 towards the cost. Required: Please calculate the fringe benefits taxable (FBT) amount for the car using the statutory method in this case for the FBT year 2020-2021.
Rochelle is a limited partner in Megawatt Partnership. For 2021, her schedule K-1 from the partnership reported the following share of partnership items: Ordinary income Section 1231 loss Nondeductible expense Cash distribution Required: $ 25,000 (3,000) 1,000 5,000 a. Calculate the net impact of the given items on Rochelle's 2021 taxable income. Assume that Rochelle does not qualify for the QBI deduction. b. Assume that Rochelle's marginal tax rate is 35 percent. Calculate her 2021 after-tax cash flow as a result of her interest in Megawatt. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the net impact of the given items on Rochelle's 2021 taxable income. Assume that Rochelle does not qualify for the QBI deduction. Net impact on taxable income Required A Required B >
Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2022, the business pays $100,000 in W–2 wages, has $150,000 of qualified property, and generates $350,000 of qualified business income. Kyra has no other items of income, deduction, or loss and will take the standard deduction of $12,950. Assume the QBI amount is net of the self-employment tax deduction. What is Kyra's qualified business income deduction?
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. This year, she sells the following long-term assets used in her business: Asset Sales Price Cost Accumulated Depreciation Building $230,000 $200,000 $52,000 Equipment 80,000 148,000 23,000 Lily's taxable income before these transactions is $160,500. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Taxable Income= Tax Liability=
1
1. David and Rochelle file a join return. Rochelle earned $28,500 during the year while pursued a degree in education full time for nine months of year and earned no income. They paid $4,500 for the care of their 2-year child, Craig. Calculate the required taxable amount for 2020 assuming the taxpayers had no income other than the stated amounts.
Heidi will earn $80,965 in wages this year. • She contributed $2,000 to an IRA. • She received a gift from her parents to put a down payment on a new car totaling $5,000. • Heidi takes the larger of her itemized deductions or the standard deduction. • She donated $1,000 to a qualified charity. 2019 Taxable Income Gross income Less: Adjustments to income Adjusted gross income Less: Deductions Taxable income
Vikrambhai
Carrie, a single taxpayer, finished her undergraduate degree using money from a student loan. She earned $56,000 her first year and paid $2,600 in interest in 2021. She can take a deduction for student loan interest in the amount of: a.$0 b.$2,500 c.$2,600 d.$1,500 e.None of these choices are correct
Theo, a single taxpayer, actively participates in a rental real estate activity. During the year, his total rental real estate inorme Was $25,000. His only other income for the year was $180,000 in wages. He does not have any adjustments to incomement does he have any expenses allocable to investment income. How much of Theo's income is subject to the net investment A. $0 B. $5,000 C.$25,000 D. $205,000

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