b. Kolt is organized as an LLC taxed as a partnership. Thirty percent of Kolt's loss is allocated to Danni. Danni works 20 hours a week on Kolt business activities (she is not considered to be a passive investor in Kolt). Danni has a $400,000 basis in her Kolt ownership interest, and she also has a $400,000 at-risk amount in her investment in Kolt. Danni does not report income or loss from any other business activity investments. How much of the $300,000 loss allocated to her from Kolt is Danni allowed to deduct this year?

Charlene owns a 70 percent interest in Maupin Mopeds, which is organizedas a partnership. She wants to open another business and needs office spacefor it. She has Maupin distribute a building worth $150,000 to her in lieu of her normal cash distribution. Maupin’s basis in the building is $55,000. Charlene’s basis in Maupin is $80,000. identify the tax issue(s) posed by the facts presented.Determine the possible tax consequences of each issue that you identify.

Renee and George do business as the OP Partnership, sharing profits and losses equally. George is a material participant in the partnership, and the partnership has no outstanding debt. All parties use the calendar year for tax purposes. On January 1 of the current year, George's basis in the partnership was $150,000; he made no withdrawals from the partnership during the year. The partnership sustained an operating loss of $500,000 in the current year. George's personal income tax return for the current year should include a) an ordinary loss of $150,000. b) an ordinary loss of $250,000. c) an ordinary loss of $150,000 and a capital loss of $100,000. d) an ordinary loss of $100,000 and a capital loss of $150,000. e) None of the above

Omar (single) is a 50 percent owner in Cougar LLC (taxed as a partnership). Omar works half time for Cougar and receives guaranteed payment of $50,000. Cougar LLC reported $450,000 of business income for the year (2020). Before considering his 50 percent business income allocation from Cougar and the self-employment tax deduction (if any), Omar’s adjusted gross income is $210,000 (includes $50,000 guaranteed payment from Cougar and $160,000 salary from a different employer). Answer the following questions for Omar. What is Omar’s self-employment tax liability (exclude the guaranteed payment)? (Do not round intermediate calculations and round your final answer to the nearest whole dollar.)

Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and expenses. You may assume that Betty will owe $2,502 in self-employment tax on her salon income, with $1,251 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.         Interest income $ 11,255 Salon sales and revenue   86,360 Salaries paid to beauticians   45,250 Beauty salon supplies   23,400 Alimony paid to her ex-husband, Rocky   6,000 Rental revenue from apartment building   31,220 Depreciation on apartment building   12,900 Real estate taxes paid on apartment building   11,100 Real estate taxes paid on personal residence   6,241 Contributions to charity   4,237     b-1. Complete Schedule 1 of Form 1040 for Betty.

Alan and Melissa are equal partners in a non-corporate business. The business has a gross income of $320,000 and has operating expenses of $210,000. They are both single. Alan also has long-term capital gains of 25,000. Assume that Alan and Melissa have no other income and no itemized deductions. What is the amount of the qualified business deduction for both of them?

Paris and Tristan are married and file jointly. Assume that Paris and Tristan's taxable income is $200,000, including $7,200 of net long-term capital gain. Also assume that their employers withheld $33,500 of federal income tax from their paychecks during the year. Given this taxable income, and the facts above, how much tax is due with the couple's return? For your convenience, the married filing jointly (MFJ) schedule is shown below. Recall that the 2023 standard deduction amount for married filing jointly is $27,700. Assume the applicable capital gain tax rate is 15%. If TI is over: But not over: The tax is: $0 $22,000 $89,450 $190,750 $364,200 $22,000 $89,450 $190,750 $364,200 $462,500 $462,500 $693,750 $693,750 No limit = 10% of taxable income. = $2,200 + 12% of amount over $22,000 = $10,294 + 22% of amount over $89,450 = $32,580 + 24% of amount over $190,750 = $74,208 + 32% of amount over $364,200 = $105,664 + 35% of amount over $462,500 = $186,601.50 +37% of amount over $693,750

Tobias is a 50% partner in Solomon LLC, which does not invest in real estate. On January 1, Tobias's adjusted basis for his LLC interest is $182,000, and his at-risk amount is $145,600. His share of losses from Solomon for the current year is $236,600, all of which is passive. Tobias owns another investment that produced $127,400 of passive activity income during the year. (Assume that Tobias is a single taxpayer, there were no distributions or changes in liabilities during the year, and the Solomon loss is Tobias's only loss for the year from any activity.) How much of Solomon's losses may Tobias deduct on his Form 1040? How much of the loss is suspended, and what Code provisions cause the suspensions? Applicable Provision § 704(d) § 465 § 469 Overall limitation At-risk limitation Passive loss limitation Therefore, Tobias can deduct $ Deductible Loss $ $ Suspended Loss on his return in the current year.

Rick, who is single, has been offered a position as a city landscape consultant. The position pays $147,800 in cash wages. Assume Rick has no dependents. Rick deducts the standard deduction instead of itemized deductions and he is not eligible for the qualified business income deduction. (Use the tax rate schedules.)     b-1. Suppose Rick receives a competing job offer of $139,000 in cash compensation and nontaxable (excluded) benefits worth $8,800. What is the amount of Rick’s after-tax compensation for the competing offer?

Lenny is the sole shareholder of an S corporation. Each year, he draws a salary and receives a distribution of profits from the corporation. Which of the following statements is TRUE? Lenny's share of the profits will not be subject to social security or medicare taxes. Lenny's salary will be treated as self-employment income and must be reported on Schedule C. Lenny will pay income taxes only on the portion of the profits that he actually distributes to himself. Lenny may determine his salary by selecting the amount that provides him the greatest tax benefit, regardless of the market rate for the services he provides.