Question
Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a partnership). Sarah does not do any work for Beehive. Beehive LLC. reported
Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a partnership). Sarah does not do any work for Beehive. Beehive LLC. reported $600,000 of taxable business income for the year (2020). Before considering her 50 percent business income allocation from Beehive and the self-employment tax deduction (if any), Sarahs adjusted gross income is $150,000 (all employee salary). Show all work.
c. What is Sarahs self-employment tax liability?
d. What is Sarahs additional Medicare tax liability?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
CISA Certified Information Systems Auditor Study Guide Aligned With The CISA Review Manual 2019 To Help You Audit Monitor And Assess Information Systems
Authors: Hemang Doshi
1st Edition
1838989587, 978-1838989583
