Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ordinary income 281,000 Net long-term capital gain 2,000 Dividend income 4,000 Charitable contribution deduction 2,000 Cash distribution $ d. Based on the information provided, what

image text in transcribedimage text in transcribed
Ordinary income 281,000 Net long-term capital gain 2,000 Dividend income 4,000 Charitable contribution deduction 2,000 Cash distribution $ d. Based on the information provided, what other calculations is Noi required to make? Noi may be eligible to deduct up to 20 % of the ordinary income as qualified business income under $ 199A, and will make that calculation on her return. This deduction does not require a cash outflow by Noi or the LLC, and it does not affect her basis or capital account. As someone treated as a general partner, Noi's distributive share of the LLC's ordinary business income is subject to self-employment tax and possibly the additional Medicare tax. Her net investment income from the LLC may be subject to the additional tax under $ 1411. e. Prepare Noi's capital account rollforward from the beginning to the end of the tax year. How does her ending capital account differ from her ending basis as calculated in part (a)? Capital account balance, beginning 427,000 year Ordinary income 281,000 Dividend income 4,000 Net long-term capital gain 2,000 287,000 $ 714,000Noi may be eligible to deduct up to m\" of the ordinary income as qualied business income under 199A, and will make that calculation on her return. This deduction does not require a cash outow by Noi or the LLC, and it does not affect her basis or capital account. As someone treated as a general partner, Noi's distributive share of the LLC's ordinary business income is subject to self-employment tax and possibly the additional Medicare tax. Her net investment income from the LLC may be subject to the additional tax under 1411. e. Prepare Noi's capital account rollforward from the beginning to the end of the tax year. How does her ending capital account differ from her ending basis as calculated in part (a)? Capital account balance, beginning year Ordinary Income Dividend income Net long-term capital gain Lees: Charitable contribution 2,000 Cash distribution to Amy Capital account balance, end of year Noi's capital account differs from her basis only by the amount of her share of LLC liabilities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems Controls And Processes

Authors: Leslie Turner, Andrea B Weickgenannt, Mary Kay Copeland

4th Edition

1119577810, 9781119577812

More Books

Students also viewed these Accounting questions

Question

Describe each benefit classification, and include two examples.

Answered: 1 week ago

Question

The background knowledge of the interpreter

Answered: 1 week ago

Question

How easy the information is to remember

Answered: 1 week ago