Question
11- Luis, a single taxpayer, has taxable income before the QBI deduction of $184,900. Luis is a doctor who operates a medical practice as a
11-
Luis, a single taxpayer, has taxable income before the QBI deduction of $184,900. Luis is a doctor who operates a medical practice as a single member LLC (reporting as a sole proprietorship). During the year, his proprietorship generates qualified business income of $175,000, W-2 wages of $60,000, and has $10,000 of qualified property. What is Luis' qualified business income deduction?
Answer: $......................
12-
In the current year, Sunset Corporation (a C corporation) had operating income of $200,000 and operating expenses of $175,000. In addition, Sunset had a $30,000 long-term capital gain, a $52,000 short-term capital loss, and $5,000 tax-exempt interest income. What is Sunset Corporation's taxable income for the year?
a.$3,000
b.$0
c.$25,000
d.$22,000
13-
Eileen transfers property worth $200,000 (basis of $190,000) to Goldfinch Corporation. In return, she receives 80% of the stock in Goldfinch Corporation (fair market value of $180,000) and a long-term note (fair market value of $20,000) executed by Goldfinch and made payable to Eileen. Eileen recognizes gain on the transfer of:
a.$10,000.
b.$0.
c.$20,000.
d.$190,000.
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