Lisa is a member of Bigfoot LLC, which runs a retail business in which she is active. For the current year, her K-1 shows: guaranteed payment, $40,000; ordinary income, $65,000; LTCG, 5,000; cash distribution, $97,000. Lisa is single and has no dependents and no other income. Assuming that all Bigfoot income is self- employment income, compute her self- employment tax. Compute her AGI. c. Compute her income tax liability
Lisa is a member of Bigfoot LLC, which runs a retail business in which she is active. For the current year, her K-1 shows: guaranteed payment, $40,000; ordinary income, $65,000; LTCG, 5,000; cash distribution, $97,000. Lisa is single and has no dependents and no other income. Assuming that all Bigfoot income is self- employment income, compute her self- employment tax. Compute her AGI. c. Compute her income tax liability
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter9: Individuals As Taxpayers
Section: Chapter Questions
Problem 29P
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