Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Supply the missing information in the following blanks: Accumulated Depreciation Original Cost Capital Improvements $1,000 Adjusted Basis 1. $15,000 $5,000 2. 15,000 8,000 9,000 3.

image text in transcribed
image text in transcribed
image text in transcribed
Supply the missing information in the following blanks: Accumulated Depreciation Original Cost Capital Improvements $1,000 Adjusted Basis 1. $15,000 $5,000 2. 15,000 8,000 9,000 3. 30,000 2,000 17,000 4. 9,000 4,000 18,000 In October 2018, Jack, a single taxpayer, sold 16M stock for $12,000, which he purchased 4 years ago for $4,000. He also sold GM stock for $14,000, which cost $17,500 3 years ago, and he had a short-term capital loss of $1,800 on the sale of land. The tax rates on long-term capital gains are as follows Long-Term Capital Gains Rates Income Level Married fling jointly $0-$77,200 09 15% 20% $77.201-$429,000 >$479,000 Single $0-$38,600 $38,601-$425,800 > $425,800 0% 15% 2046 Head of household 0% $0-$51,700 $51,701-$452,400 > $452.400 15% 2096 In Jack's other taxable income (stary) { $78,000, what is the amount of Jack's tax on these capital transactions? Select whether the following taxpayers are eligible for the QBI deduction "Yes" or "No" and the deduction amount. If an answer is zero, en Taxpayer Yes or No QBI deduction amount No Yes 1. Aretha is a married taxpayer filing jointly and a shareholder in Soul Corporation (not an Scorporation). She owns 10% of the outstanding stock and the corporation generates $700,000 of taxable income from its business operations and distributes a $70,000 dividend to Aretha. Her total taxable income before the QBI deduction is $92,000 2. Barbara is a single taxpayer and sole proprietor that operates a small chain of hair salons that specialize in obscure hair colors, Her business has no employees since all the stylists operate as Independent contractors. Barbara's business generated business income of $120,000 in 2018. Her taxable income before any QBI deduction is $132,500 3. Cathy is married and files a joint return with her spouse. Cathy operates a small family restaurant as a sole proprietor, She pays wages of $70,000 and the QBI from the restaurant is $100,000 Cathy's spouse has wages of $250,000 and their joint taxable Income is $364,000 4. Dorothy is an owner-employee in an engineering services firm that is organized as an S corporation. Her share of QBI Income is $40,000 and her share of S corporation wages is $24,000. Dorothy also won the lottery in 2018 and her taxable income is $200,000. Her filing status is single. Yes Yes

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

Students also viewed these Accounting questions