I:17-54 Qualified Business Income Deduction and Net Business Interest Limitation. Charlene is an equal partner in the
Question:
I:17-54 Qualified Business Income Deduction and Net Business Interest Limitation. Charlene is an equal partner in the CD Partnership. The partnership does not qualify as a small business under the $27 million gross receipts test. The partnership incurred the following items for the current year. Ignore the deduction for one-half of self-employment tax.
Gross receipts $ 30,000,000 Minus: Cost of goods sold (21,000,000)
Gross profit $ 9,000,000 General business expenses 2,400,000 Salary expense (W-2 wages) 1,600,000 Depreciation expense 1,000,000 Interest expense 2,000,000 Charlene is married and files a joint tax return, has no other sources of income, and claims the standard deduction. Calculate the partnership’s ordinary income for the current year and Charlene’s taxable income.
Step by Step Answer:
Pearsons Federal Taxation Corporations Partnerships Estates And Trust 2023
ISBN: 9780137730391
36th Edition
Authors: KENNETH E. ANDERSON, DAVID S. HULSE, TIMOTHY J. RUPERT Richard J. Joseph LeAnn Luna