Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified servi enerates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds qual nadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI d also their modified taxable income). . Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2022. QBI deduction 36,000 ✓ Taxable income 364.100
Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified servi enerates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds qual nadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI d also their modified taxable income). . Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2022. QBI deduction 36,000 ✓ Taxable income 364.100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Answer the all step ASAP.
Transcribed Image Text:Problem 9-42 (LO. 6)
Scott and Laura are married and will file a joint tax return. Scott 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 qualified property with an
unadjusted basis of $10,000. Laura 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.
QBI deduction
36,000
Taxable income
364,100
Tax liability
72,943 X
b. After providing you with 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.
QBI deduction
Taxable income
60,000 X
346,100 X
Tax liability
c. What is the marginal tax rate on Scott's bonus? Enter the percent to one decimal place.
42 X %
72,968 X
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 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education