Question

Diego and Molly are married and will file a joint return. Diego earns $300,000 from his...

Diego and Molly are married and will file a joint return. Diego earns $300,000 from his single member LLC (a law firm), which the tax law treats as a sole proprietorship. Wages paid by the law firm amount to $40,000; the law firm owns no significant property. Molly is employed as a tax manager by a local CPA firm. Diego and Molly’s modified taxable income is $381,400 (this also equals taxable income before the QBI deduction).

What is their tentative QBI based on the W–2 Wages/Capital Investment Limit?

Determine their allowable QBI deduction.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Scott and Laura are married and will file a joint tax return. Scott has a sole...
Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified services" business) that reports net income of $300,000. The proprietorship pays W–2 wages of $40,000 and holds property with an unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI deduction is $375,000 (this is also their modified taxable income). What is their tentative QBI based on the W–2 Wages/Capital Investment Limit?...
Scott and Laura are married and will file a joint tax return. Scott has a sole...
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 $386,600 (this is also their modified taxable income). a. Determine Scott and Laura’s QBI deduction, taxable income, and...
Gary is married and files a joint return. Gary owns a sole proprietorship with QBI of...
Gary is married and files a joint return. Gary owns a sole proprietorship with QBI of $300,000. W-2 wages are $50,000 and the total basis of property held in the business was $750,000. His taxable income before his QBI deduction was $376,600 (which was also his modified taxable income). What is Gary’s QBI deduction?
Jason and Paula are married. They file a joint return for 2019 on which they report...
Jason and Paula are married. They file a joint return for 2019 on which they report taxable income before the QBI deduction of $297,000. Jason operates a sole proprietorship, and Paula is a partner in the PQRS Partnership. Both are a qualified trade or business, and neither is a specified services business. Jason's sole proprietorship reports $188,800 of qualified business income, reports W–2 wages of $47,600, and owns qualified property of $21,500. Paula's partnership reports a loss for the year,...
Jason and Paula are married. They file a joint return for 2020 on which they report...
Jason and Paula are married. They file a joint return for 2020 on which they report taxable income before the QBI deduction of $274,500. Jason operates a sole proprietorship, and Paula is a partner in the PQRS Partnership. Both are a qualified trade or business, and neither is a "specified services" business. Jason's sole proprietorship generates $167,200 of qualified business income and W–2 wages of $50,000 and has qualified property of $20,000. Paula's partnership reports a loss for the year,...
Problem 2. Scott Taxpayer is an Attorney who operates his own law firm. As a single-member...
Problem 2. Scott Taxpayer is an Attorney who operates his own law firm. As a single-member LLC, Scott reports his firm operations as a sole proprietor. Scott has QBI from his law firm of $450,000, he reports paying W–2 wages of $140,000, and the unadjusted basis of property used in the LLC is $350,000. Scott is married and will file a joint tax return with his spouse. Their taxable income before the QBI deduction is $425,000, including $20,000 of capital...
2. Jason and Paula are married. They file a joint return for 2020 on which they...
2. Jason and Paula are married. They file a joint return for 2020 on which they report taxable income before the QBI deduction of $200,000. Jason operates a sole proprietorship, and Paula is a partner in the PQRS Partnership. Both are a qualified trade or business and neither is a specified services business. Jason’s sole proprietorship reports $150,000 of net income, W-2 wages of $45,000, and has qualified property of $50,000. Paula’s partnership reports a loss for the year, and...
Glen owns and manages a single member LLC that provides financial consulting to his clients. He...
Glen owns and manages a single member LLC that provides financial consulting to his clients. He is married and will file a joint return with his wife Diane. HI LLC has net income of $290,000. The LLC pays out W-2 wages of $100,000 and has with an unadjusted basis of $50,000. Glen and Diane's taxable income before the QBI deduction is $305,000, this is also modified taxable income. Determine the QBI deduction for 2018.
Mary owns a specified service business. She is married and files a joint return. Her firm...
Mary owns a specified service business. She is married and files a joint return. Her firm has QBI of 400,000. W-2 wages of the business was $100,000 and the total basis of property held in the business was $500,000. Her taxable income before her QBI deduction was $406,600 (which was also her modified taxable income). What is Mary’s QBI deduction? Assume the same facts with respect to her business but her taxable income and MTI was $550,000. What is Mary’s...
In 2019, Kendra has taxable income before the QBI deduction of $274,000. Kendra is single and...
In 2019, Kendra has taxable income before the QBI deduction of $274,000. Kendra is single and has income from her law firm (a sole proprietorship operating as an LLC) of $200,000. Her law firm paid wages of $82,000 and has qualified property of $20,000. What is Kendra’s QBI deduction?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT