Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a "specified services" business) that generates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds property with an unadjusted basis of $10,000. Scott is employed by a local school district. Their taxable income before the QBI deduction is $400,100 (this is also their modified taxable income). A. Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2022. B. After providing you the original information in the problem, scott finds out that he will be receiving a $6,000 bonus in December 2022 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction taxable income, and tax liability for 2022.
Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a "specified services" business) that generates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds property with an unadjusted basis of $10,000. Scott is employed by a local school district. Their taxable income before the QBI deduction is $400,100 (this is also their modified taxable income). A. Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2022. B. After providing you the original information in the problem, scott finds out that he will be receiving a $6,000 bonus in December 2022 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction taxable income, and tax liability for 2022.
Chapter15: Taxing Business Income
Section: Chapter Questions
Problem 28P
Related questions
Question
Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a "specified services" business) that generates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds property with an unadjusted basis of $10,000. Scott is employed by a local school district. Their taxable income before the QBI deduction is $400,100 (this is also their modified taxable income).
A. Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2022.
B. After providing you the original information in the problem, scott finds out that he will be receiving a $6,000 bonus in December 2022 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction taxable income, and tax liability for 2022.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT