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Please help me with this question. Please show your work. Answer on cheggs is incorrect. Maria and Javier are the equal partners in MarJa, a
Please help me with this question. Please show your work. Answer on cheggs is incorrect.
Maria and Javier are the equal partners in MarJa, a partnership that is a qualified trade or business. In the current year, MarJa had $382,600 of ordinary income after reporting $459,120 in guaranteed payments to Maria and Javier for their services to MarJa ( $229,560 each). a. What is Maria's and Javier's qualified business income? X Feedback Check My Work At its most basic level, 199A permits an individual to deduct 20 percent of the qualified business income generated through a sole proprietorship, a partnership, or an S corporation. Qualified business income (QBI) is defined as the ordinary income less ordinary deductions taxpayer earns from a "qualified trade or business" conducted in the United States by the taxpayer (e.g., from a sole proprietorship). It also includes the distributive share of these amounts from each partnership or S corporation interest held by the taxpayer. b. What is Maria's and Javier's qualified business income if MarJa had $535,640 of ordinary income after reporting $229,560 in guaranteed payments to Maria and Javier (\$114,780 each)Step by Step Solution
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