ZuoTi.Pro
Question

TB MC Qu. 04-66 Jorge is a 60-percent owner of JJ LLC... Jorge is a 60-percent owner of JJ LLC (taxed as a partnership). He i

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Option 1 - Business income allocations are not subject to self-employment tax.


Because He is a passive investor in JJ and he doesn't perform any work for JJ. Thus the correct answer is Business income allocations are not subject to the subject of self-employment tax.


Business income allocations are not subject to the net investment income tax which is not true because Jorge is a passive investor in JJ.


The Additional Medicare Tax applies to wages, railroad retirement compensation, and self-employment income over certain thresholds. So this will not be true regarding Jorge's tax treatment of business income allocated to him by JJ.


0 0
Add a comment
Know the answer?
Add Answer to:
TB MC Qu. 04-66 Jorge is a 60-percent owner of JJ LLC... Jorge is a 60-percent...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • TB MC Qu. 04-54 Logan, a 50-percent shareholder in Military... Logan, a 50-percent shareholder in Military...

    TB MC Qu. 04-54 Logan, a 50-percent shareholder in Military... Logan, a 50-percent shareholder in Military Gear Inc. (MG), is comparing the tax consequences of losses from C corporations with losses from S corporations. Assume MG has a $100,000 tax loss for the year, Logan's tax basis in his MG stock was $150,000 at the beginning of the year, and he received $75,000 ordinary income from other sources during the year. Assuming Logan's marginal tax rate is 24 percent, how...

  • Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $100,000...

    Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $100,000 of business income from WCC for the year. Jacob’s marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the nearest whole dollar amount.) What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income?

  • Jake is a member of WCC (an LLC taxed as a partnership). Jake was allocated $140,000...

    Jake is a member of WCC (an LLC taxed as a partnership). Jake was allocated $140,000 of business income from WCC for the year. Jake’s marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the nearest whole dollar amount.) A. What is the amount of tax Jake will owe on the income allocation if the income is qualified business income...

  • Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $105,000...

    Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $105,000 of business income from WCC for the year. Jacob’s marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the nearest whole dollar amount.) rev: 11_08_2019_QC_CS-189656 b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified...

  • Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $95,000...

    Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $95,000 of business income from WCC for the year. Jacob’s marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the nearest whole dollar amount.) b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income...

  • Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $100,000...

    Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $100,000 of business income from WCC for the year. Jacob’s marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the nearest whole dollar amount.) b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income...

  • Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $160,000...

    Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $160,000 of business income from WCC for the year. Jacob’s marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the nearest whole dollar amount.) rev: 11_08_2019_CS-189656 b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified...

  • Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $95,000...

    Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $95,000 of business income from WCC for the year. Jacob’s marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the nearest whole dollar amount.) a. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business...

  • Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $65,000...

    Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $65,000 of business income from WCC for the year. Jacob’s marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the nearest whole dollar amount.) a. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business...

  • Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $80,000...

    Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $80,000 of business income from WCC for the year. Jacob’s marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the nearest whole dollar amount.) a. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT