ZuoTi.Pro
Question

Accounting tax help

Katie is a shareholder in Engineers One, a civil engineering company. This year, Katie’s share of net business income from Engineers One is $200,000. Assume that Katie’s allocation of wages paid by Engineers One to its employees is $300,000 and her allocation of Engineers One’s qualified property is $150,000 (unadjusted basis of equipment, all purchased within the past three years). Assume Katie has no other business income and no capital gains or qualified dividends. Her taxable income before the deduction for qualified business income is $400,000.

 

Required:

  1. Calculate Katie’s deduction for qualified business income.

  2. Assume the same facts provided above, except Katie’s net business income from Engineers One is $400,000 and her taxable income before the deduction for qualified business income is $350,000.


Accounting-Tax   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Accounting tax help
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

Similar Homework Help Questions

  • Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan...

    Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000. (Leave no answer blank....

  • Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan...

    Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice. Assume that Roquan pays $40,000 wages to his employees, he has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000. (Leave no answer blank. Enter zero if applicable.) Required: a. Calculate Roquan's...

  • 6. Your client Rachel Robert is an engineer who practices as a sole proprietor. This year, Rachel had net business incom...

    6. Your client Rachel Robert is an engineer who practices as a sole proprietor. This year, Rachel had net business income of $500,000 from her business. Assume that Rachel pays $20,000 wages to her employees, she has $500,000 of property (unadjusted basis of equipment she purchased last year), she has no capital gains, and her taxable income before the deduction for qualified business income is $380,000. Calculate your client, Rachel’s deduction for qualified business income. Please show all workings.

  • 1. Your client Rachel is an accountant who practices as a sole proprietor. This year, Rachel...

    1. Your client Rachel is an accountant who practices as a sole proprietor. This year, Rachel had net business income of $270,000 from her practice. Assume that Rachel pays $50,000 wages to her employees, she has $20,000 of property (unadjusted basis of equipment she purchased last year), she has no capital gains, and her taxable income before the deduction for qualified business income is $225,000. Calculate your client Rachel's deduction for qualified business income. Please show all workings :)

  • Jennifer is a CPA and a single taxpayer using the standard deduction. In 2020, her CPA...

    Jennifer is a CPA and a single taxpayer using the standard deduction. In 2020, her CPA practice generates qualified business income of $162,400 and she has no other income or losses. Jennifer's taxable income before the QBI deduction is $150,000 ($162,400 – $12,400 standard deduction). Jennifer employs an administrative assistant in her practice and pays him $75,000 in wages. The unadjusted basis of depreciable assets employed in the practice totals $30,000. If amount is zero, enter "0". Assume the QBI...

  • Ting is a CPA and a single taxpayer using the standard deduction. In 2019, her CPA...

    Ting is a CPA and a single taxpayer using the standard deduction. In 2019, her CPA practice generates qualified business income of $162,200; she records no other income or losses. Ting's taxable income before the QBI deduction is $150,000 ($162,200 - $12,200 standard deduction). Ting employs an administrative assistant in her practice and pays him $75,000 in wages. The unadjusted basis of depreciable assets employed in the practice total $30,000. If amount is zero, enter"0". Assume the QBT amount is...

  • holly generated engineering income

    Holly files married filing jointly and reports income of $300,000 ($340,000 AGI - $40,000 itemized deductions) before the deduction for qualified business income.  She has no capital gains or dividends included in taxable income. Holly's engineering consulting service generates $20,000 of qualified business income.  She paid no wages during the current year. What is Holly's deduction for qualified business income?

  • Ella, a single taxpayer, operates a gardening shop as a sole proprietor. The business has 3...

    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...

  • Jennifer is a CPA and a single taxpayer using the standard deduction. In 2018, her CPA...

    Jennifer is a CPA and a single taxpayer using the standard deduction. In 2018, her CPA practice generates net income of $162,000 and she has no other income or losses. Jennifer's taxable income before the QBI deduction is $150,000 ($162,000 – $12,000 standard deduction). Jennifer employs an administrative assistant in her practice and pays him $75,000 in wages. The unadjusted basis of depreciable assets employed in the practice total $30,000. If amount is zero, enter "0". a. What is Jennifer's...

  • melissa self employed accountant. net sch c income of 120000. taxable income was 99522 for the...

    melissa self employed accountant. net sch c income of 120000. taxable income was 99522 for the qbi threshold. she will claim depreciation. to accurately figure the computation must take account the ubia of any property held by business figure deduction using simple 2 step computation her taxable is below the lower threshold since she is involved in specified trade she will us multi step process to compute deduction none of these apply cause not entitled to deduction Question 20 of...

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