Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

US tax i need help please QBI Follow References Layout Mailings Review View Picture Format Tell me AalbCcDdE ABCDE AabbCcDc ABCDE AaBb/ - ' '

US tax
i need help please image text in transcribed
QBI Follow References Layout Mailings Review View Picture Format Tell me AalbCcDdE ABCDE AabbCcDc ABCDE AaBb/ - ' ' Aa A X A-DA- Normal Title No Spacing Heading 1 Heading 2 4. What makes the QBI different from both deductions? 5.(0.5 pts) Consider the multiple-choice question below and your answer to question 1 above. What amount should be entered in the line you identified in question 1? [2] Tom owns a domestic sole proprietorship that allocates $55,000 of income to him and pays $30,000 of wages to employees. He also owns 30% of a foreign entity that allocates $60,000 of income to him and pays him $50,000 of wages. Neither the sole proprietorship nor the entity are specified service businesses. What is the total amount of qualified business income for Tom? A. $12,000 B. $110,000 C. $85,000 D. $55,000 The correct answer is D. A. The amount of $12,000 is 20% of the $60,000 income from the foreign trust. B. The amount of $110,000 is the total of the $60,000 income from the foreign trust and the $50,000 of wages received from the foreign trust. C. The amount of $85,000 is the total of the $55,000 income and the $30,000 wages paid from the sole proprietorship. D. Qualified business income includes items of income, gain, deduction, and loss to the extent such items are effectively connected with the conduct of a trade or business within the United States; it does not include wages and foreign income. Thus, Tom has qualified business income of $55,000

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

More Books

Students also viewed these Accounting questions

Question

Briefly describe the evolution of the term entrepreneurship.

Answered: 1 week ago