What is Omar's deduction
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 15-48 (LO 15-3) (Static)
[The following information applies to the questions displayed below]
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 (2023). 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 $180,000 salary from
a different employer). Omar reports itemized deductions of $40,000. Answer the following questions for Omar.
Note: Leave no answer blank. Enter zero if applicable. Round your intermediate calculations and final answers to the
nearest whole dollar.
Problem 15-48 Part c (Static)
c. Assume the original facts and that the business income allocated to Omar is not from a specified service. What is Omar's deduction
for qualified business income? Assume that 81.82 percent of the self-employment tax is from self-employment income included in QBI
[ie, $225,000 business income allocation - $275,000 (business income allocation plus guaranteed payment)]. That is, the $50,000
guaranteed payment is not qualified business income. Ignore the wage-based limitation.
Deduction for qualified business income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F152d606a-19d5-42cc-b16b-d3ab7c31caac%2Fd1378c71-d783-4bc8-8308-4b87a5fe3c27%2Fyu6jhai_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 15-48 (LO 15-3) (Static)
[The following information applies to the questions displayed below]
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 (2023). 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 $180,000 salary from
a different employer). Omar reports itemized deductions of $40,000. Answer the following questions for Omar.
Note: Leave no answer blank. Enter zero if applicable. Round your intermediate calculations and final answers to the
nearest whole dollar.
Problem 15-48 Part c (Static)
c. Assume the original facts and that the business income allocated to Omar is not from a specified service. What is Omar's deduction
for qualified business income? Assume that 81.82 percent of the self-employment tax is from self-employment income included in QBI
[ie, $225,000 business income allocation - $275,000 (business income allocation plus guaranteed payment)]. That is, the $50,000
guaranteed payment is not qualified business income. Ignore the wage-based limitation.
Deduction for qualified business income
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