Question
The PDQ Partnership earned ordinary income of $150,000 in 2018. The partnership has three equal partners, Pete, Donald, and Quint. Quint, who is single, uses
The PDQ Partnership earned ordinary income of $150,000 in 2018. The partnership has three equal partners, Pete, Donald, and Quint. Quint, who is single, uses the standard deduction, and has other income of $15,000 (not connected with the partnership) in 2018. He receives a $30,000 distribution from the partnership during the year. What is Quint's taxable income in 2018? (If an input field is not used, leave the input field(s) empty. Do not select a label or enter a zero. Assume that the partnership is not eligible for the QBI deduction.)
STANDARD DEDUCTION Filing Status
Married individuals filing joint returns and surviving spouses
$24,000
Heads of households
$18,000
Unmarried individuals (other than surviving spouses and heads of households)
$12,000
Married individuals filing separate returns
$12,000
Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses
$1,300*
Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse
$1,600*
Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,050.
* These amounts are $2,600 and $3,200, respectively, for a taxpayer who is both aged and blind.
Personal and Dependency Exemptions Suspended:In conjunction with the increased standard deduction amount, the Tax Cuts and Jobs Act reduces the personal exemption amount to $0 for tax years from 2018 through 2025, effectively suspending the exemptions for these years.
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Adjusted gross income (AGI) -----------------
Minus: Deductions from AGI:
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Quint's taxable income -----------------
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