Problem 2-35 (LO. 3, 4) Susan, a single taxpayer, owns and operates a bakery (as a...

Question

Question

Problem 2-35 (LO. 3, 4) Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

1) Susan's tentative QBI based on the W-2 Wages/Capital Investment limit = $290000

Details below

Qualified business income $200000

Less : W-2 Wages $60000

Add : Qualified Property $150000

Net Amount = $290000

2) The deduction is allow as it is NOT a specified business. Susan's allowable qualified business income deduction = $60880

20% of total taxable income = 20% × $304400 = $60880

Taxable income = QBI From W-2 + Interest + Wages - Standard Deduction

= $290000 + $3300 + $11100 = $304400

Add a comment

Answer 2

Similar Homework Help Questions

Problem 2-35 (LO. 3, 4) Susan, a single taxpayer, owns and operates a bakery (as a...

Problem 2-35 (LO. 3, 4) Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2019, the business pays $60,000 of W–2 wages and generates $200,000 of qualified business income. Susan also has a part-time job earning wages of $11,000 and receives $3,200 of interest income. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's tentative QBI based on the W–2 Wages/Capital Investment...
Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is...

Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2019, the business pays $60,000 of W–2 wages and generates $200,000 of qualified business income. Susan also has a part-time job earning wages of $11,000 and receives $3,200 of interest income. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's tentative QBI based on the W–2 Wages/Capital Investment Limit? $ Determine Susan's allowable...
Problem 15-33 (LO. 3, 4) Susan, a single taxpayer, owns and operates a bakery as a...

Problem 15-33 (LO. 3, 4) Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2019, the business pays $60,000 of W-2 wages and reports qualified business income of $200,000. Susan also has a part-time job earning wages of $11,000 and receives $3,200 of interest income. Assume the QB1 amount is net of the self-employment tax deduction What is Susan's tentative QBI based on the W-2 Wages/Capital Investment...

Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is...

Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2019, the business pays $60,000 of W–2 wages and reports qualified business income of $200,000. Susan also has a part-time job earning wages of $11,000 and receives $3,200 of interest income. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's tentative QBI based on the W–2 Wages/Capital Investment Limit? $ ______ Determine Susan's...
Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is...

Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2019, the business pays $60,000 of W–2 wages and reports qualified business income of $200,000. Susan also has a part-time job earning wages of $11,000 and receives $3,200 of interest income. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's tentative QBI based on the W–2 Wages/Capital Investment Limit? $ Determine Susan's allowable...
It is not $50,000. Susan, a single taxpayer, owns and operates a bakery as a sole...

It is not $50,000. Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2019, the business pays $100,000 in W-2 wages, holds $150,000 of qualified property, and generates $150,000 of qualified business income. Susan has no other items of income or loss and will take the standard deduction. Assume the QBI amount is net of the self- employment tax deduction. What is Susan's QBI deduction?

Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is...

Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2019, the business pays $100,000 in W–2 wages, has $150,000 of qualified property, and generates $350,000 of qualified business income. Susan has no other items of income or loss and will take the standard deduction. Assume the QBI amount is net of the self-employment tax deduction. What is Susan's qualified business income deduction?
Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is...

Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2018, the business pays $100,000 in W–2 wages, has $150,000 of qualified property, and has $150,000 in net income (all of which is qualified business income). Susan has no other items of income or loss and will take the standard deduction. What is Susan's QBI deduction?
Exercise 2-19 (LO. 3, 4) Thad, a single taxpayer, has taxable income before the QBI deduction...

Exercise 2-19 (LO. 3, 4) Thad, a single taxpayer, has taxable income before the QBI deduction of $190,700. Thad, a CPA, operates an accounting practice as a single member LLC (which he reports as a sole proprietorship). During 2019, his proprietorship generates qualified business income of $150,000, W-2 wages of $125,000, and $10,000 of qualified property. Assume the QBI amount is net of the self-employment tax deduction. What is Thad's qualified business income deduction? $

Exercise 2-19 (Algorithmic) (LO. 3, 4) Thad, a single taxpayer, has taxable income before the QBI...

Exercise 2-19 (Algorithmic) (LO. 3, 4) Thad, a single taxpayer, has taxable income before the QBI deduction of $182,000. Thad, a CPA, operates an accounting practice as a single member LLC (which he reports as a sole proprietorship). During 2019, his proprietorship generates qualified business income of $145,600, W–2 wages of $109,200, and $8,400 of qualified property. Assume the QBI amount is net of the self-employment tax deduction. If required, round any division to two decimal places. Round your final...

Problem 2-35 (LO. 3, 4) Susan, a single taxpayer, owns and operates a bakery (as a...

Homework Answers

Add Answer to:
Problem 2-35 (LO. 3, 4) Susan, a single taxpayer, owns and operates a bakery (as a...

Post as a guest

Earn Coins