Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a specified services business) that generates a

Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a specified services business) that generates a 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 $400,100 (this is also their modified taxable income)

a. determine scott and lauras QBI deduction, taxable income and tax liability for 2022.

b. after providing you with the original information in the problem, scott finds out that he will be receiving a $6,000 bonus in december 2022 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction, taxable income, and tax liability for 2022.

c. what is the marginal tax rate on Scott's bonus?

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

Step: 3

blur-text-image

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

Executive Roadmap To Fraud Prevention And Internal Control Creating A Culture Of Compliance

Authors: Joel T. Bartow, Martin T. Biegelman

2nd Edition

1118004582, 9781118004586

More Books

Students also viewed these Accounting questions