The qualified business income deduction is unavailable to which of the following businesses:

1. A sole proprietor dental practice that generates about $70,000 in income each year
2. An incorporated small tools manufacturer
3. A partnership operated by a husband and wife that sells wood carvings over the Internet
4. A S corporation that owns and operates a restaurant. The S corporation has six different owners.
5. The QBI deduction is available to all of the above.

Qualified business income does not include which of the following:

a. Income from sales of goods b. Deductions related to cost of goods sold c. Deductions for business expenses such as rent

d. Interest income from an investment in bonds

In 2019, Tracy generates a $10,000 loss from an otherwise qualified business activity. Fortunately, she also works as an employee and has taxable income of $40,000. Tracys 2019 QBI deduction is a. $0

b. $2,000

c. $8,000

d. $6,000

Martin sells a stock investment for $26,000 on August 2, 2019. Martins adjusted basis in the stock is $15,000.

1. If Martin acquired the stock on November 15, 2018, calculate the amount and the nature of the gain or loss.
2. If Martin had acquired the stock on September 10, 2017, calculate the amount and nature of the gain or loss.

Chrissy receives 200 shares of Chevron stock as a gift from her father. The stock cost her father $9,000 10 years ago and is worth $10,500 at the date of the gift.

1. If Chrissy sells the stock for $12,500, calculate the amount of the gain or loss on the sale.
2. If Chrissy sells the stock for $4,600, calculate the amount of the gain or loss on the sale.

In 2019, Michael has net short-term capital losses of $1,500, a net long-term capital loss of $27,000, and other ordinary taxable income of $45,000.

1. Calculate the amount of Michaels deduction for capital losses for 2019.
2. Calculate the amount and nature of his capital loss carryforward.
3. For how long may Michael carry forward the unused loss?

Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000. Total real estate taxes for the home are $950, and interest on the home mortgage is $3,000. Annual utilities and maintenance expenses total $1,800, and depreciation expense is $4,500. Calculate Sherrys net income or loss from the vacation home for this tax year.

Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1993. He also acquired a rental house in 2019, which he actively manages. During 2019, Walters share of the partnerships losses was $30,000, and his rental house generated $20,000 in losses. Walters modified adjusted gross income before passive losses is $130,000.

1. Calculate the amount of Walters allowable loss for rental house activities for 2019.

$

2. Calculate the amount of Walters allowable loss for the partnership activities for 2019.

$

3. What may be done with the unused losses, if anything?

Julie, a single taxpayer, has completed her 2019 Schedule C and her net loss is $40,000. Her only other income is wages of $30,000. Julie takes the standard deduction of $12,200 in 2019. a. Calculate Julies taxable income or loss. b. Calculate the business and nonbusiness portions of her taxable income or loss.

Business:

Nonbusiness:

c. Determine Julies 2019 NOL.