Question
Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a specified services business) that generates qualified
Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a specified services business) that generates qualified business income of $300,000. The proprietorship pays W2 wages of $40,000 and holds property with an unadjusted basis of $10,000. Scott is employed by a local school district. Their taxable income before the QBI deduction is $386,600 (this is also their modified taxable income). Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. a. Scott and Laura's QBI deduction is $fill in the blank taxable income is $fill in the blank , and tax liability is $fill in the blank for 2020. b. After providing you the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in December 2020 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Lauras QBI deduction, taxable income, and tax liability for 2020. Scott and Laura's QBI deduction is $fill in the blank , taxable income is $fill in the blank , and tax liability is $fill in the blank for 2020. c. What is the marginal tax rate on Scott's bonus? Round your answer to one decimal place. fill in the blank %
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