Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified services business) that generates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds qualified property with an unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI deduction is $424,200 (this is also their modified taxable income). a. Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2023. QBI deduction 36,000 ✓ Taxable income Tax liability b. After providing you with the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in Decembe 2023 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction, taxable income, and tax liability for 2023. QBI deduction 33,600 Taxable income Tax liability X c. What is the marginal tax rate on Scott's bonus? Enter the percent to one decimal place. 44.8% X

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
Problem 47P
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Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified services" business) that
generates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds qualified property with an
unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI deduction is $424,200
(this is also their modified taxable income).
a. Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2023.
QBI deduction
36,000
Taxable income
Tax liability
b. After providing you with the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in December
2023 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction, taxable
income, and tax liability for 2023.
QBI deduction
Taxable income
33,600
%
X
Tax liability
c. What is the marginal tax rate on Scott's bonus? Enter the percent to one decimal place.
44.8
X
Transcribed Image Text:Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified services" business) that generates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds qualified property with an unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI deduction is $424,200 (this is also their modified taxable income). a. Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2023. QBI deduction 36,000 Taxable income Tax liability b. After providing you with the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in December 2023 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction, taxable income, and tax liability for 2023. QBI deduction Taxable income 33,600 % X Tax liability c. What is the marginal tax rate on Scott's bonus? Enter the percent to one decimal place. 44.8 X
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