Hardev Current Attempt in ProgressJennifer Davis, single, owns and operates the following businesses in 2023. None of these are specified service businesses:BusinessQBIW-2 wagesPropertySkysong Decorations$99,000$12,700$0Jennifer's Cookies$65,700$0$0Jennifer's Snow Supplies($44,500)$5,000$0Her modified taxable income is $398,000. Can she ignore the loss from Jennifer's Snow Supplies in calculating her QBI deduction? (Ifshe can ignore loss, enter amount as 0. Do not leave any answer filed blank.)Combined QBI deduction

The Qualified Business Income (QBI) deduction is a tax benefit for pass-through businesses, such as…

Her modified taxable income is $398,000. Can she ignore the loss from Jennifer's Snow Supplies in calculating her QBI deduction? she can ignore loss, enter amount as 0. Do not leave any answer filed blank.) V Combined QBI deduction

Her modified taxable income is $398,000. Can she ignore the loss from Jennifer's Snow Supplies in calculating her QBI deduction? she can ignore loss, enter amount as 0. Do not leave any answer filed blank.) V Combined QBI deduction

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter4: Additional Income And The Qualified Business Income Deduction

Section: Chapter Questions

Problem 26MCQ

See similar textbooks

Similar questions

Barbara Jones, single, owns and operates the following businesses in 2023. None of these are specified service businesses: Business Marigold Decorations Barbara's Cookies Barbara's Snow Supplies No QBI $98,000 $64,000 ($45,200) Combined QBI deduction W-2 wages $12,600 $0 $4,900 Her modified taxable income is $401,000. Can she ignore the loss from Barbara's Snow Supplies in calculating her QBI deduction? (If she can ignore loss, enter amount as O. Do not leave any answer filed Property $0 $0 $0 116,800
During the last five months of the year, Dwana opens a new Internet telecommunications business called Dwan-Com. Dwan-Com bills 50,000 of revenues, but receives only 40,000 cash. Dwan-Com incurs 3,000 of supply expenses, and 41,000 of labor costs. Dwan-Com pays for 2,200 of the supplies and 38,000 of the labor costs in the current year. a. What is Dwan-Coms taxable income if it elects the cash method of accounting? b. What is Dwan-Coms taxable income if it elects the accrual method of accounting? c. What method of accounting do you recommend that Dwan-Com elect?
Linda is an employee of JRH Corporation. Which of the following would be included in Lindas gross income? a. Premiums paid by JRH Corporation for a group term life insurance policy for 50,000 of coverage for Linda. b. 1,000 of tuition paid by JRH Corporation to State University for Lindas masters degree program. c. A 2,000 trip given to Linda by JRH Corporation for meeting sales goals. d. 1,200 paid by JRH Corporation for an annual parking pass for Linda.
Which of the following will result in the recognition of gross income? Gail's employer allows her to set aside $ 4,000 from her wages to cover the cost of daycare for Gail's four-year-old daughter. Gail's daycare costs are $ 4,300 for the year. Hannah purchases a new sofa from her employer, Sofas-R-Us, for $ 1,200. The cost of the sofa to the furniture store is $ 1,100 and the sofa normally sells for $ 1,700. Jayden's employer purchases her commuting pass for the subway at a cost of $ 225 per month. Havana is a lawyer. The law firm she works for pays for her subscription to Lawyer's Weekly, a trade magazine for attorneys. None of the above will result in recognition of gross income.
Shelly has 200,000 of QBI from her local jewelry store (a sole proprietorship). Shellys proprietorship paid 30,000 in W-2 wages and has 20,000 of qualified property. Shellys spouse earned 74,400 of wages as an employee, they earned 20,000 of interest income during the year, and they will be filing jointly and using the standard deduction. What is their QBI deduction for 2019?
Keiji Jones is the owner of a small retail business operated as a sole proprietorship. During 2022, his business recorded the following items of income and expense: Revenue from inventory sales Cost of goods sold Business license tax Rent on retail space. Supplies Wages paid to employees Payroll taxes Utilities Required: $ 147,000 33,500 2,400 42,000 15,000 22,000 1,700 3,600 a. Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in Keiji's 2022 Form 1040. b. Compute self-employment tax payable on the earnings of Keiji's sole proprietorship by completing a 2022 Schedule SE, Form 1040. c. Assume that Keiji's business is not a service business, and that it has $155,000 unadjusted basis in tangible depreciable property. Calculate Keiji's 2022 QBI deduction, before any overall taxable income limitation. Complete this question by entering your answers in the tabs below. Schedule C Schedule SE Part a Part b Part c Assume that Keiji's…
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. This year, she sells the following long-term assets used in her business: Asset Sales Price Cost Accumulated Depreciation Building $230,000 $200,000 $52,000 Equipment 80,000 148,000 23,000 Lily's taxable income before these transactions is $160,500. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Taxable Income= Tax Liability=
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2018, she sells the following long-term assets used in her business: Sales Asset Price Cost Building $234,200 $204,200 Equipment 84,200 152,200 Accumulated Depreciation $56,200 27,200 Lily's taxable income before these transactions is $164,700. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2021, she sells the following long-term assets used in her business: Cost Asset Building Equipment Sales Price $ 230,000 80,000 Accumulated Depreciation $ 52,000 $ 200,000 148,000 23,000 Lily's taxable income before these transactions is $190,500. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Description Amount Taxable income Tax liability
H1. profile-image Carlos owns a property which he has rented. During 2021, the property generated $24,000 in rental income. Carlos incurred the following expenses related to rental operations: • Depreciation $5,000 • Real estate tax 2,000 Utilities (water and electricity) Maintenance 3,000 • Boat expenses which Carlos uses to 1,500 meet clients and sign contracts 5,500 Determine the net income from rental operations that Carlos will include in his individual income tax return. Submit your computations.
I. Problem Calculate Adjusted gross income for Sarah Smith based on the following information: salary $200,000 child support received $20,000 capital loss $5,000 Interest on State of California bonds $20,000 Interest on Federal treasury bonds $10,000 Sole proprietorship net income $40,000 Partnership loss $2,000 Unemployment compensation $20,000 Sarah received a gift of $10,000 from her father. Contribution to Individual Retirement Account $1,000 Sarah's brother Samuel paid back a $10,000 loan from 2015 Contribution to health savings account $1,000 Penalty for early withdrawal from a timed savings account $1,000. Rental income $20,000 Sarah found a ring with a fair market value of $2,000 on the bus. Sarah won $1,000 in scratch of lotto Sarah won $500 in a baking contest. Sarah had qualified student loan interest of $1,000 Sarah received alimony of $40,000 divorce decree signed in 2012 Sarah received a legal settlement of $20,000 in payment for a broken ankle she incurred during a…
1. Dan owns and operates Schoepf’s Sales Solutions (3S), a sole proprietorship. 3S sponsors a profit-sharing plan. Dan had net income of $250,000 and paid self-employment taxes of $22,000 (assumed) during the year. Assuming Dan is over the age of 50, what is the maximum amount that Dan can contribute to the profit-sharing plan on his behalf for 2019? $47,800 $53,800 $56,000 $62,000 2. Colin owns and operates Colin’s Creative Coaching (3C), a sole proprietorship, 3C sponsors a 401(k)/profit-sharing plan. Colin had net income of $200,000 and paid self-employment taxes of $20,000 (assumed) during the year. Assuming Colin is over the age of 50, what is the maximum amount that Colin and his company can contribute on his behalf to the plan for 2019? $25,000 $56,000 $62,000 $63,000