Exercise 15-17 (Algorithmic) (LO. 3, 4) Thad, a single taxpayer, has taxable income before the QBI deduction of $200,000. Thad, a CPA, operates an accounting practice as a single member LLC (which he reports as a sole proprietorship). During 2020, his proprietorship generates qualified business income of $160,000, W-2 wages of $120,000, and $12,800 of qualified property. Assume the QBI amount is net of the self-employment tax deduction. If required, round any division to two decimal places. Round your final answer to the nearest dollar. What is Thad's qualified business income deduction? $ Exercise 15-18 (Algorithmic) (LO. 3, 4) Jason and Paula are married. They file a joint return for 2020 on which they report taxable income before the QBI deduction of $267,000. Jason operates a sole proprietorship, and Paula is a partner in the PQRS Partnership. Both are a qualified trade or business, and neither is a "specified services" business. Jason's sole proprietorship generates $186,400 of qualified business income and W-2 wages of $55,600 and has qualified property of $18,000. Paula's partnership reports a loss for the year, and her allocable share of the loss is $24,700. The partnership reports no W-2 wages, and Paula's share of the partnership's qualified property is $8,800. Assume the QBI amount is net of the self-employment tax deduction. What is their QBI deduction for the year? Exercise 15-19 (Algorithmic) (LO. 3, 4) In 2020, Henry Jones works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2020, Henry's qualified business income from driving is $94,600. Assume Henry takes the standard deduction of $12,400. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. Compute Henry's QBI deduction and his tax liability for 2020. QBI deduction: $ 16,440 Tax liability (round to the nearest dollar): $ 13,874 X 2020 Tax Rate H of the amount over- If in 0 The tax is: Single-Schedule X If taxable income is: But not Over- over $ 0 $ 9,875 9,875 40,125 40,125 85,525 85,525 163,300 163,300 207,350 ........ 10% $ $ 987.50 + 12% 9,875 40,125 4,617.50 + 22% 14,605.50 +24% 33,271.50 + 32% 85,525 163,300 207,350 518,400 47,367.50 + 35% 207,350 518,400 518,400 156,235.00 + 37% Problem 15-32 (LO. 3, 4) Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2020, the business pays $100,000 in W-2 wages, has $150,000 of qualified property, and generates $150,000 of qualified business income. Susan has no other items of income or loss and will take the standard deduction of $12,400. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's QBI deduction? Problem 15-26 (LO. 3, 4) Scott and Laura are married and will file a joint tax return. Laura 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 property with an unadjusted basis of $10,000. Scott is employed by a local school district. Their taxable income before the QBI deduction is $386,600 (this is also their modified taxable income). Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. a. Scott and Laura's QBI deduction is $ taxable income is $ and tax liability is for 2020. Feedback b. After providing you the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in December 2020 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction, taxable income, and tax liability for 2020. taxable income is $ , and tax liability is $ Scott and Laura's QBI deduction is $ for 2020 c. What is the marginal tax rate on Scott's bonus? Round your answer to one decimal place. % Problem 15-33 (LO. 3, 4) Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2020, the business pays $60,000 of W-2 wages, has $150,000 of qualified property, and generates $200,000 of qualified business income. Susan also has a part-time job earning wages of $11,100 and receives $3,300 of interest income. Her standard deduction is $12,400. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's tentative QBI based on the W-2 Wages/Capital Investment Limit? $ 30,000 Determine Susan's allowable QBI deduction