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Please help with this two part question. Answer on chegg is not helpful. Show your work to understand how to get the answer. Thank you
Please help with this two part question. Answer on chegg is not helpful. Show your work to understand how to get the answer. Thank you
Maria and Javier are the equal partners in MarJa, a partnership that is a qualified trade or business. In the current year, MarJa had $350,000 of ordinary income after reporting $500,000 in guaranteed payments to Maria and Javier for their services to MarJa ( $250,000 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 a 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 $550,000 of ordinary income after reporting $300,000 in guaranteed payments to Maria and Javier ( $150,000 each)Step by Step Solution
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