I:17-54 Qualified Business Income Deduction and Net Business Interest Limitation. Charlene is an equal partner in the

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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.

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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

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