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Problem 9-42 (LO. 6) 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 $389,800 (this is also their modified taxable income). a. Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2021. QBI deduction 20,000 x Taxable income 50,000 x Tax liability 389,800 x b. After providing you with the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in December 2021 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction, taxable income, and tax liability for 2021. QBI deduction 20,000 x Taxable income 100,000 x Tax liability ox c. What is the marginal tax rate on Scott's bonus? Enter the percent to one decimal place. 50 X % Exercise 9-21 (Algorithmic) (LO.5) In 2021, the CEO of Crimson, Inc., entertains 14 clients at a skybox in Memorial Stadium for a single athletic event during the year. Substantive business discussions occurred at various times during the event. The box cost $2,200 per event and seats 16 people. The cost of a regular, nonluxury box seat at Memorial ranges from $75 to $150.) Refreshments served during the event cost $1,370 (the refreshments were obtained from a local restaurant and were separately itemized on the bill Crimson received). How much of these costs may Crimson deduct? 350 x Linda, who files as a single taxpayer, had AGI of $280,000 for 2021. She incurred the following expenses and losses during the year $33,000 4,800 1,300 6,000 5,000 Medical expenses (before the 7.5%-of-AGI limitation) State and local income taxes State sales tax Real estate taxes Home mortgage interest Automobile loan interest Credit card interest Charitable contributions Casualty loss (before the 10%-of-AGI limitation but after the $100 floor; not in a Federally declared disaster area) Unreimbursed employee business expenses 750 1,000 7,000 34,000 7,600 Calculate Linda's allowable itemized deductions for the year. The Wilmoths plan to purchase a house but want to determine the after-tax cost of financing its purchase. Given their projected taxable income, the Wilmoths are in the 24% Federal income tax bracket and the 8% state income tax bracket (i.e., an aggregate marginal tax bracket of 32%). Assume that the Wilmoths will benefit from itemizing their deductions for both Federal and state purposes. The total cash outlay during the first year of ownership will be $34,000 ($3,400 principal payments, $30,600 qualified residence interest payments). If required, round your interim calculation to nearest dollar. As a result, the initial year after-tax cost of financing the purchase of the home will be Miller owns a personal residence with a fair market value of $305,300 and an outstanding first mortgage of $244,240, which was used entirely to acquire the residence. This year, Miller gets a home equity loan of $15,265 to purchase a new fishing boat. How much of this mortgage debt is treated as qualified residence indebtedness? Tabitha sells real estate on March 2 of the current year for $278,800. The buyer, Ramona, pays the real estate taxes of $13,940 for the calendar year, which is the real estate property tax year. Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume a 365-day year. a. Determine the real estate taxes apportioned to and deductible by the seller, Tabitha, and the amount of taxes deductible by Ramona. Tabitha: $ Ramona: b. Calculate Ramona's basis in the property and the amount realized by Tabitha from the sale. Tabitha: $ Ramona: $ Liz had AGI of $130,000 in 2021. She donated Bluebird Corporation stock with a basis of $10,000 to a qualified charitable organization on July 5, 2021. a. What is the amount of Liz's deduction assuming that she purchased the stock on December 3, 2020, and the stock had a fair market value of $17,000 when she made the donation? b. Assume that she purchased the stock on July 1, 2018, and the stock had a fair market value of $17,000 when she made the donation. What is Liz's deduction? C. Assume that she purchased the stock on December 3, 2020, and the stock had a fair market value of $7,500 when she made the donation to the charity. What is Liz's deduction