Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sarah, married, owns and operates a single member LLC that provides accounting services to her clients. She files a joint return with her husband, Ethan.

image text in transcribed
Sarah, married, owns and operates a single member LLC that provides accounting services to her clients. She files a joint return with her husband, Ethan. Her LLC reports $300,000 of qualified business income, W-2 wages of $100,000, and assets used in the LLC with an unadjusted basis of $75,000. Their taxable income before the QBI deduction is $285,000 (this is also their modified taxable income.) Their QBI deduction is: SO. S50,000. $57,000. $60,000 e. none of the above. Evan, married, owns and operates a single member LLC that provides financial planning services to his clients. He files a joint retum with his wife, Mikala. His LLC reports $540,000 of qualified business income, W-2 wages of S156,000, and assets used in the LLC with an unadjusted basis of $425,000. Their taxable income before the OBI deduction is $475,000 and their modified taxable income is $448,000. Their QBI deduction is: SO. b. c. S49,625. $78,000 $89,600. none of the above. 3. Samuel, single, owns and operates a single member LLC that manufactures restaurant equipment within the U.S. The business pays W-2 wages of $120,000, has assets used in its LLC that have an unadjusted basis of $800,000, and generates $350,000 of net qualified business income. Samuel has no other items of income or loss and uses the single standard deduction to calculate his taxable income. His QBI deduction is: SO. b. S50,000 $60,000. $70,000. none of the above. Devonte, single, owns and operates a single member LLC that manufactures lawn equipment within the U.S. The business pays W-2 wages of $180,000, has assets used in its LLC that have an unadjusted basis of $2,000,000, and generates $600,000 of net qualified business income. Samuel has no other items of income or loss and uses the single standard deduction to calculate his taxable income. His QBI deduction is: a. b. c. $90,000. $95.000 $117,560. $120,000 none of the above

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

BMW Brand Audit

Authors: Marion Maguire

1st Edition

3638653137, 978-3638653138

More Books

Students also viewed these Accounting questions

Question

Organizing Your Speech Points

Answered: 1 week ago