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Artichoke, a single individual, operates a service business that earned $110,000 during the tax year. The business has no tangible property and paid no W-2
Artichoke, a single individual, operates a service business that earned $110,000 during the tax year. The business has no tangible property and paid no W-2 wages. Required: a. Compute Artichoke's Qualified Business Income (QBI) deduction, assuming his overall taxable income before QBI is $125,000. Complete this question by entering your answers in the tabs below. Required A Compute Artichoke's QBI deduction, assuming his overall taxable income before QBI is $125,000. QBI deduction Garlic, an individual, is a limited partner in Onion Partnership. This year, Garlic's share of partnership ordinary income is $20,000, and she received a cash distribution of $30,000. Garlic's tax basis in her partnership interest at the beginning of the year was $50,000. Her marginal tax rate is 22 percent. Garlic qualifies for the QBI deduction, without regard to any limitations on this QBI deduction. Required: a. Calculate the tax cost of Garlic's partnership earnings this year. Tax cost
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