the question for picture one is choosing for yes or not, for picture two is matching the different chat though their definition, for picture three is to do the calculation, for picture four is the same as picture three.

eBook Calculator Discussion Question 15-1 (LO. 1) Jennifer and Jamie are starting a business and have asked you for advice about whether they should form a partnership, a corporation, or some other type of entity. To help Jennifer and Jamie decide which type of entity to establish, label the following as "Yes" a question to ask or "No" no need to ask. a. What type of business are you going to operate? b. What amount and type of income (loss) do you expect from the business? C. Do you expect to have losses in the early years of the business? Yes d. Will you lease or purchase your office building? e. Will you withdraw profits from the business or leave them in the business so it can grow? f. What is the amount and type of income (loss) do you expect from other sources? g. In what state(s) will the business be formed? The Federal income tax treatment of business income usually follows the legal form of the taxpayer le an individual's sole proprietorship is reported on the Form 1040) accorporation's taxable income is computed on Form 1120. The check the box Regulations are used if the unincorporated taxpayer wants to use a different tax regime. Under these rules a disregarded entity is taxed as an individual or a corporate division; other tax regimes are not available. For instance, a one member limited liability company is a disregarded entsty C commorations Disregarded entity A deduction allowed for noncorporate taxpayers based on the qualified business income of a qualified trade or business. In general, the deduction is limited to the lesser of 20 percent of qualified business income on 20 percent of taxable income before the qualified business income deduction less any net capital gain There are three limitations on the deduction-an overall limitation (based on modified taxable income) another that applies to high-income taxpayers, and a third that applies to certain types of services businesses. 5 1994 Deduction for qualified business income A legal entity in which all owners are protected from the entity's debts but which may lack other characteristics of a corporation (e. centralized management, unlimited life, free transferability of Interests). LLCs are treated as partnerships (or disregarded entities if they have only one owner) for tax purposes Limited liability company (LLC) A separate taxable entity subject to the rules of Subchapter of the Code. This business form may create a double taxation effect relative to its shareholders. The entity is subject to the regular corporate tax and a number of penalty taxes at the Federal level. Checkthe-box Regulations By using the check-the-box rules prudently, an entity can select the most attractive tax results offered by the Code, without being bound by legal forms. By default, an unincorporated entity with more than one owner is taxed as a partnership, an unincorporated entity with one owner is a disregarded entity, taxed as a sole proprietorship or corporate division. No action is necessary by the taxpayer if the legal form on default status is desired. Form 3832 is used to check a box" and change the tax status. Not available at the entity is incorporated under state law xercise 15-15 (Algorithmic) (LO. 3, 4) obert is the sole shareholder and CEO of ABC, Inc., an s corporation that is a qualified trade or business. During the current year, ABC ecords net income of $305,000 after deducting Robert's $91,500 salary. In addition to his compensation, ABC pays Robert dividends of What is Robert's qualified business income? 303,500 What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and sponsibilities is $181,5007 213,500 Exercise 15-13 (Algorithmic) (LO. 3, 4) In 2019, Meghann Carlson, a single taxpayer, reports QBI of $145,000 and modified taxable income of $101,500 (this is also her taxable income before the OBI deduction). What is Meghann's OBI deduction? Meghann's QB1 deduction is $ 20,300 eBook Calculator Discussion Question 15-1 (LO. 1) Jennifer and Jamie are starting a business and have asked you for advice about whether they should form a partnership, a corporation, or some other type of entity. To help Jennifer and Jamie decide which type of entity to establish, label the following as "Yes" a question to ask or "No" no need to ask. a. What type of business are you going to operate? b. What amount and type of income (loss) do you expect from the business? C. Do you expect to have losses in the early years of the business? Yes d. Will you lease or purchase your office building? e. Will you withdraw profits from the business or leave them in the business so it can grow? f. What is the amount and type of income (loss) do you expect from other sources? g. In what state(s) will the business be formed? The Federal income tax treatment of business income usually follows the legal form of the taxpayer le an individual's sole proprietorship is reported on the Form 1040) accorporation's taxable income is computed on Form 1120. The check the box Regulations are used if the unincorporated taxpayer wants to use a different tax regime. Under these rules a disregarded entity is taxed as an individual or a corporate division; other tax regimes are not available. For instance, a one member limited liability company is a disregarded entsty C commorations Disregarded entity A deduction allowed for noncorporate taxpayers based on the qualified business income of a qualified trade or business. In general, the deduction is limited to the lesser of 20 percent of qualified business income on 20 percent of taxable income before the qualified business income deduction less any net capital gain There are three limitations on the deduction-an overall limitation (based on modified taxable income) another that applies to high-income taxpayers, and a third that applies to certain types of services businesses. 5 1994 Deduction for qualified business income A legal entity in which all owners are protected from the entity's debts but which may lack other characteristics of a corporation (e. centralized management, unlimited life, free transferability of Interests). LLCs are treated as partnerships (or disregarded entities if they have only one owner) for tax purposes Limited liability company (LLC) A separate taxable entity subject to the rules of Subchapter of the Code. This business form may create a double taxation effect relative to its shareholders. The entity is subject to the regular corporate tax and a number of penalty taxes at the Federal level. Checkthe-box Regulations By using the check-the-box rules prudently, an entity can select the most attractive tax results offered by the Code, without being bound by legal forms. By default, an unincorporated entity with more than one owner is taxed as a partnership, an unincorporated entity with one owner is a disregarded entity, taxed as a sole proprietorship or corporate division. No action is necessary by the taxpayer if the legal form on default status is desired. Form 3832 is used to check a box" and change the tax status. Not available at the entity is incorporated under state law xercise 15-15 (Algorithmic) (LO. 3, 4) obert is the sole shareholder and CEO of ABC, Inc., an s corporation that is a qualified trade or business. During the current year, ABC ecords net income of $305,000 after deducting Robert's $91,500 salary. In addition to his compensation, ABC pays Robert dividends of What is Robert's qualified business income? 303,500 What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and sponsibilities is $181,5007 213,500 Exercise 15-13 (Algorithmic) (LO. 3, 4) In 2019, Meghann Carlson, a single taxpayer, reports QBI of $145,000 and modified taxable income of $101,500 (this is also her taxable income before the OBI deduction). What is Meghann's OBI deduction? Meghann's QB1 deduction is $ 20,300