Sheldon and Amy own a plumbing business as a sole proprietorship. The file a joint return and are cash basis, calendar-year taxpayers. For the year, they had the following information: Ordinary income from sole proprietorship $300,000 Taxable income $405,000 Modified taxable income $375,000 W-2 wages paid to employees $70.000 Qualified property basis SE tax deduction $50.000 $23,968 SE insurance deduction $20,000 What is their QBI deduction? $13,548 $35,000 $37,658 $51,206 OO OO

Sheldon and Amy own a plumbing business as a sole proprietorship. The file a joint return and are cash basis, calendar-year taxpayers. For the year, they had the following information: Ordinary income from sole proprietorship $300,000 Taxable income $405,000 Modified taxable income $375,000 W-2 wages paid to employees $70.000 Qualified property basis SE tax deduction $50.000 $23,968 SE insurance deduction $20,000 What is their QBI deduction? $13,548 $35,000 $37,658 $51,206 OO OO

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1
Carl and Karina file a joint return. Karina earned a salary of $40,250 and received dividends of $3,180, taxable interest income of $2,090, and nontaxable interest of $1,045. Carl received $9,360 of social security benefits and a gift of $6,090 from his brother. What amount of social security benefits is taxable to Carl and Karina? Taxable social security benefits = $
Mr. and Mrs. Davos file a joint tax return. Each spouse contributed $3,1000 to a traditional IRA. Required: In each of the following cases, compute the deduction for these contrilbutions. The AGI in each case is before any deduction. a. Noither spouse is an active participant in a qualified retiroment plan, and thoir AGI is $126,800. b. Mr. Davos is an active participant, but Mrs. Davos is not. Their AGI is $126,800. c. Both spouses are active participants, and their AGI is $85,930. d. Mr. Devos is self-employed and doesn't have a Keogh plan. Mrs. Davos is an active participant. Their AGI is $110,000. (Do not round intermediate calculations.) Amount a Deductible amount b Deductible amount c. Deductible amount d. Deductible amount
Heron Corporation, a calendar year, accrual basis taxpayer, provides the following information for this year and asks you to prepare Schedule M-1. Net income per books (after-tax) $239,700 Taxable income 195,000 Federal income tax liability 59,300 Interest income from tax-exempt bonds 5,000 Interest paid on loan incurred to purchase tax- 2,000 exempt bonds Life insurance proceeds received as a result of 100,000 death of Heron's president Premiums paid on policy on life of Heron's 4,500 president Excess of capital losses over capital gains 2,000 Retained earnings at beginning of year 375,000 Cash dividends paid 90,000 Tax depreciation in excess of book 7,500 depreciation
John and Mary file married filing joint and have the following details Modified Adjusted Gross Income $275,000 Wages $150,000 Taxable interest $20,000 Short term capital gains $15,000 Net self-employment income $90,000 What is their Net Investment Income Tax?
The following Data relates to Stephanie Garner, a resident taxpayer. Stephanie derives income from a public relations business and is also a partner in a marketing business Assessable business Income 2019/20 2020/21 2021/22 $93,400. $126,000 $133,400 General Business Deductions Share of Partnership Net Income (Loss). Superannuation and Gifts Net Exempt income 80,000 129,000 119,200 (21,800) 14,900 (5,600) 11,000 8,000 3,000 2,000 4,000 1,500 General Business deductions are separate from personal superannuation, gifts, partnership lossess and losses of previous years. For each year, determine Stephanie's Taxable Income and any losses that may be carried forward
Jane and Ed Rochester who are filing Married Filing Jointly are married with a 2-year-old child, who lives with them and whom they support financially. They normally take the standard deduction. What would be the 2023 Gross Income if Ed and Jane realized the following items of income and expense: Ed's Salary $ 35,000 Jane's Salary $100,000 Municipal bond interest income $400 Capital Loss on Investments of ($5,000) Ordinary Dividends $2500 Standard Deduction $27,700 Real property tax (from AGI) $10,000 Charitable contributions (from AGI) $7,000 $134,500 O $132,500 $122,500 $106,800
Victor and Roberta Sanchez file jointly and had a combined income of $85,700 last year. They contributed $4,200 to their retirement plan and had itemized deductions of $19,420. Their combined income tax withheld last year amounted to $9,555. Are they entitled to a refund or do they owe additional taxes? O owe additional taxes O entitled to a refund How much (in $)? $ Need Help? Read It Watch It Master It
Victor and Roberta Sanchez file jointly and had a combined income of $84,700 last year. They contributed $4,200 to their retirement plan and had itemized deductions of $19,420. Their combined income tax withheld last year amounted to $9,666. Are they entitled to a refund or do the owe additional taxes? How much?
Edward is married and files a joint return. He reports the following items of income and loss for the year: Salary $ 120,000 Activity A (passive) 22,000 Activity B (nonbusiness rental real estate) (42,000) If Edward actively participates in the management of Activity B, what is his AGI for the year and what is the passive loss catyover to next year?