Sole proprietorship |
C corporation with salary |
C Corporation with Dividend |
S corporation with salary |
S Corporation with Distribution |
|
Carol |
|||||
Pass-through income |
47000 |
30000 |
47000 |
||
Qualified business income deduction (20%) |
9400 |
6000 |
9400 |
||
Salary income |
17000 |
17000 |
|||
Dividend income |
17000 |
||||
Total income to carol |
37600 |
17000 |
17000 |
41000 |
37600 |
Carol’s tax |
$8272 |
$3740 |
$0 |
$9020 |
$8272 |
Dear Student,
If any doubts then feel free to ask.
Carol, a single taxpayer, operates a computer repair shop. She is considering either continuing the business...
Homework: Homework Chapter 02 Save 1 of 6 (1 complete) HW Score: 1.92%, 0.48 of 25 pts Score: 0 of 5 pts PC:2-28 (similar to) Question Help Lianna, a single taxpayer, operates a coffee shop. She is considering either continuing the business as a sole proprietorship or reorganizing it as either a C corporation or an Scorporation Her goal is to withdraw $25,000 of profits from the business annually while minimizing her total tax liability She expects the business to...
Ella, a single taxpayer, operates a gardening shop as a sole proprietor. The business has 3 employees who are paid a total of $110,000 during 2020. Assume that the business has no significant assets. During 2020, the business generates $156,000 of income and Ella’s taxable income before the QBI deduction is $162,000 What is Ella’s qualified business income deduction? What is Ella’s qualified business income deduction if the facts are the same except that the business income is $320,000 and...
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Mary, a single taxpayer, operates a printing business as a sole proprietor. The business has two employees who are paid a total of $85,000 during 2020. Assume that the business has no significant assets. During 2020, the business generates $60,000 of income, and her taxable income before the QBI deduction is $75,000. What is Mary's deduction for QBI? $42,500 $12,000 $15,000 13,750 $0
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I need dividends income tax for sasha to complete this question in part b. Problem 3-31 (LO. 1) In the current year, Azure Company has $350.000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Arure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket Based on this information, determine the income tax consequences to Azure Company and...
Mackenzie is considering conducting her business, Mac561, as either a single member LLC or as an S corporation. Determine Mackenzie’s after-tax cash flow from the entity’s business income and any compensation she receives from the business assuming her marginal ordinary income tax rate is 37 percent, her marginal FICA rate on employee compensation is 1.45 percent, her marginal self-employment tax rate is 2.9 percent, and any employee compensation or self-employment income she receives is subject to the .9 percent additional...
A. Mackenzie is considering conducting her business, Mac561, as either a single member LLC or as an S corporation. Determine Mackenzie’s after-tax cash flow from the entity’s business income and any compensation she receives from the business assuming her marginal ordinary income tax rate is 37 percent, her marginal FICA rate on employee compensation is 1.45 percent, her marginal self-employment tax rate is 2.9 percent, and any employee compensation or self-employment income she receives is subject to the .9 percent...