This year, the Tastee Partnership reported income before guaranteed payments of $158,000. Stella owns a 85% profits interest andworks 1,680 hours per year in the business. Euclid owns a 15% profits interest (with a basis of $30,000 at the beginning of the taxyear) and performs no services for the partnership during the year. For services performed during the year, Stella receives a "salary" of$7,900 per month. Euclid withdrew $15,800 from the partnership during the year as a normal distribution of cash from Tastee (i.e., notfor services).If required, round your answers to the nearest dollar.a. What is the amount of guaranteed payments made by the partnership this year?b. How much is the partnership's ordinary income after any permitted deduction for guaranteed payments?c. How much income will Stella report?d. How much income will Euclid report?

Variables in the question: Reported income before guaranteed payments=$158,000Salary per month of…

Answered: This year, the Tastee Partnership…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Jenna began the year with a tax basis of $21,000 in her partnership interest. Her share of partnership liabilities consists of $9,000 of recourse liabilities and $11,000 of nonrecourse liabilities at the beginning of the year and $9,000 of recourse liabilities and $13,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $31,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership, and she has $8,000 of passive income from other sources. How much of Jenna’s loss is limited by her tax basis? How much of Jenna’s loss is limited by her at-risk amount? How much of Jenna’s loss is limited by the passive activity loss rules? Please subparts answer fast i give positive rating and without plagiarism no plagiarism please
During the current year, Marsha Engles withdrew $4,000 monthly from the partnership of Engles and Cox Water Management Consultants. Is it possible that her share of partnership net income for the current year might be more or less than $48,000? Explain.
Dan and Sam are married and will file a joint return. Their modified adjusted gross income is $97,000. Dan has losses of $14,000 from rental activities in which he actively participates. Sam has a $3,000 loss from a limited partnership in which he does not materially participate. They have no passive income for the year. What is the amount of their allowable passive loss? (a) $0 (b) $3,000 (c) $14,000 (d) $17,000
I need some help with F, G please
Check my work. 25 Bill and Mary filed a joint Federal income tax return this year. Mary owns a 30% interest in MAJIC Partnership, a women’s dress boutique. Mary’s share of the partnership’s net income is $280,000. Her shares of the partnership’s W–2 wages and unadjusted basis of depreciable property are $100,000 and $300,000, respectively. What is Bill and Mary’s maximum QBI deduction if their total taxable income is $300,000? Since their total taxable income is less than the threshold limit of $326,600, the deduction is calculated as 20%. $280,000 * 20% (QBI deduction) = $56,000 What is the maximum QBI deduction if Bill and Mary’s total taxable income is $450,000? Since $450,000 exceeds the threshold limit of $326,600, and above $100,000 over in the case of filing joint returns, the limitation phase is applicable.
At the beginning of the tax year, Barnaby's basis in the BBB Partnership was $136,400, including his $13,640 share of partnership debt. At the end of the tax year, his share of debt was $20,460. His share of the partnership's income for the year was $54,560, and he received cash distributions totaling $34,100. In addition, his share of the partnership's nontaxable income was $2,728. How much is Barnaby's basis at the end of the tax year? $_________
Jenna began the year with a tax basis of $22,000 in her partnership interest. Her share of partnership liabilities consists of $3,000 of recourse liabilities and $12,000 of nonrecourse liabilities at the beginning of the year and $3,000 of recourse liabilities and $14,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $36,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership, and she has $5,000 of passive income from other sources. b. How much of Jenna’s loss is limited by her at-risk amount?
Roberto is single and has taxable income of $530,000 in 2019. As a 25 percent partner in a partnership that produces $820,000 of ordinary income from manufacturing a product, his share of partnership income is $205,000. The partnership paid $210,000 of W-2 wages and the total unadjusted basis of tangible depreciable business property is $360,000. What is Roberto’s qualified business income deduction?
Omar (single) is a 50 percent owner in Cougar LLC (taxed as a partnership). Omar works half time for Cougar and receives guaranteed payment of $50,000. Cougar LLC reported $450,000 of business income for the year (2020). Before considering his 50 percent business income allocation from Cougar and the self-employment tax deduction (if any), Omar’s adjusted gross income is $210,000 (includes $50,000 guaranteed payment from Cougar and $160,000 salary from a different employer). Answer the following questions for Omar. What is Omar’s self-employment tax liability (exclude the guaranteed payment)? (Do not round intermediate calculations and round your final answer to the nearest whole dollar.)
Artemis is a 30% partner in the CAR Partnership. At the beginning of the tax year, Artemis' basis in the partnership interest was $60,000, including a share of partnership liabilities. During the current year, CAR reported net ordinary income of $40,000. In addition, CAR distributed $5,000 to each of the partners ($15,000 total). At the end of the year, Artemis' share of partnership liabilities increased by $20,000. Artemis' basis in the partnership interest at the end of the year is: a. $87,000. b. $75,000. c. $82,000. d. $120,000. e. $60,000.
For the last 10 years, you prepared the joint tax returns for Dominic (husband; age 40) and Dulce (wife; age 35) Divorcio. Last year they got a divorce and remained as your separate tax clients. Under the dissolution decree, Dominic has to pay Dulce $2,500 per month alimony, which he does for the current year. You have completed Dominic’s tax return for the current year and you deducted the required alimony payments to Dulce on Dominic’s Form 1040. Dulce came in to have you prepare her tax return and refused to report her alimony received as income. She stated, “I am not going to pay tax on the $30,000 from Dominic.” She views the payments as “a gift for putting up with him for all those years of marriage.” Dulce will not budge on excluding this alimony from income. Would you sign the Paid Preparer’s declaration (see example above) on this return? Why or why not?
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