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 > Evan, a single individual, operates a service business that earned $110,000 (after all applicable deductions) in 2021. The business has no tangible property and paid no W-2 wages. Required: a. Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $125,000. b. Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $175,000. Complete this question by entering your answers in the tabs below. Required A Required B Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $175,000. (Round your intermediate computations and final answers to the nearest whole dollar value.) QBI deduction < Required A Required B
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 > Evan, a single individual, operates a service business that earned $110,000 (after all applicable deductions) in 2021. The business has no tangible property and paid no W-2 wages. Required: a. Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $125,000. b. Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $175,000. Complete this question by entering your answers in the tabs below. Required A Required B Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $175,000. (Round your intermediate computations and final answers to the nearest whole dollar value.) QBI deduction < Required A Required B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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 >
Transcribed Image Text:Evan, a single individual, operates a service business that earned $110,000 (after all applicable deductions) in 2021. The business has
no tangible property and paid no W-2 wages.
Required:
a. Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $125,000.
b. Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $175,000.
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $175,000. (Round your intermediate
computations and final answers to the nearest whole dollar value.)
QBI deduction
< Required A
Required B
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