Required Information [The following information applies to the questions displayed below.] Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $185,000 salary working full time for Angels Corporation. Angels Corporation reported $420,000 of taxable business income for the year (2022). Before considering his business income allocation from Angels and the self-employment tax deduction (if any). Mason's adjusted gross income is $185,000 (all salary from Angels Corporation). Mason claims $60,000 in itemized deductions. Answer the following questions for Mason. Note: Leave no answer blank. Enter zero if applicable. b. Assuming the business income allocated to Mason is income from a specified service trade or business, what is Mason's deduction for qualified business income? Ignore the wage-based limitation when computing the deduction. Deduction for qualified business income $ 37,000
Required Information [The following information applies to the questions displayed below.] Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $185,000 salary working full time for Angels Corporation. Angels Corporation reported $420,000 of taxable business income for the year (2022). Before considering his business income allocation from Angels and the self-employment tax deduction (if any). Mason's adjusted gross income is $185,000 (all salary from Angels Corporation). Mason claims $60,000 in itemized deductions. Answer the following questions for Mason. Note: Leave no answer blank. Enter zero if applicable. b. Assuming the business income allocated to Mason is income from a specified service trade or business, what is Mason's deduction for qualified business income? Ignore the wage-based limitation when computing the deduction. Deduction for qualified business income $ 37,000
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 30P
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Question
![Required Information
[The following information applies to the questions displayed below.]
Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $185,000 salary
working full time for Angels Corporation. Angels Corporation reported $420,000 of taxable business income for the year
(2022). Before considering his business income allocation from Angels and the self-employment tax deduction (if any).
Mason's adjusted gross income is $185.000 (all salary from Angels Corporation). Mason claims $60,000 in itemized
deductions. Answer the following questions for Mason.
Note: Leave no answer blank. Enter zero if applicable.
b. Assuming the business income allocated to Mason is income from a specified service trade or business, what is Mason's deduction
for qualified business income? Ignore the wage-based limitation when computing the deduction.
Deduction for qualified business income
S
37,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F731ffdb8-4c8a-495f-ae47-6b0f4e641133%2F238d0b00-ec3c-4256-8a4c-7913c09d18d3%2Fzfec04xvn_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $185,000 salary
working full time for Angels Corporation. Angels Corporation reported $420,000 of taxable business income for the year
(2022). Before considering his business income allocation from Angels and the self-employment tax deduction (if any).
Mason's adjusted gross income is $185.000 (all salary from Angels Corporation). Mason claims $60,000 in itemized
deductions. Answer the following questions for Mason.
Note: Leave no answer blank. Enter zero if applicable.
b. Assuming the business income allocated to Mason is income from a specified service trade or business, what is Mason's deduction
for qualified business income? Ignore the wage-based limitation when computing the deduction.
Deduction for qualified business income
S
37,000
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