Maria and Javier are the equal partners in MarJa, a partnership that is a qualified trade or business. In thecurrent year, Marja had $328,200 of ordinary income after reporting $393,840 in guaranteed payments toMaria and Javier for their services to MarJa ($196,920 each).a. What is Maria's and Javier's qualified business income?b. What is Maria's and Javier's qualified business income if MarJa had $459,480 of ordinary income afterreporting $196,920 in guaranteed payments to Maria and Javier ($98,460 each)?

Qualified Business Income refers to that amount of income that comprises income items that are…

a. What is Maria's and Javier's qualified business income? b. What is Maria's and Javier's qualified business income if Marja had $459,480 of ordinary income after reporting $196,920 in guaranteed payments to Maria and Javier ($98,460 each)?

a. What is Maria's and Javier's qualified business income? b. What is Maria's and Javier's qualified business income if Marja had $459,480 of ordinary income after reporting $196,920 in guaranteed payments to Maria and Javier ($98,460 each)?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter15: Taxing Business Income

Section: Chapter Questions

Problem 14CE

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Question

Maria and Javier are the equal partners in MarJa, a partnership that is a qualified trade or business. In the
current year, Marja had $328,200 of ordinary income after reporting $393,840 in guaranteed payments to
Maria and Javier for their services to MarJa ($196,920 each).
a. What is Maria's and Javier's qualified business income?
b. What is Maria's and Javier's qualified business income if MarJa had $459,480 of ordinary income after
reporting $196,920 in guaranteed payments to Maria and Javier ($98,460 each)?

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