Question

Problem 12-12 (LO. 1) In the current year, Riflebird Company had operating income of $220,000, operating expenses of $175,000, and a long- term capital loss of $10,000. How do Riflebird Company and Roger, the sole owner of Riflebird, report this information on their respective Federal income tax returns for the current year under the following assumptions? If an amount is zero, enter "0" a. Riflebird Company is a proprietorship (Roger did not make any withdrawals from the business) Roger reports $ net operating profit and $ long-term capital loss on his tax 45,000 10,000 3,000X deduction for qualified business income. Riflebird Company, as a return. Roger would claim a $ proprietorship, files no entity Federal income tax return for the year. b. Riflebird Company is a C corporation (no dividends were paid during the year). net operating profit and s 0 long-term capital loss on his tax Roger reports $ return. Riflebird Company will report taxable income of $ 45,000 on its Form 1120

Pleases correct the red X.

Rodger would claim a $_______________ deduction for qualified business income.

Answer 1

Roger can claim upto 20% of qualified business income
20%*45000	9000
Answer should $9000 can be claimed
If any doubt please comment