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In the current year, the DOE LLC received revenues of $200,000 and paid the following amounts:...

In the current year, the DOE LLC received revenues of $200,000 and paid the following amounts: $50,000 of business expenses (rent, utilities, wages, depreciation, etc.), a $40,000 guaranteed payment (for services) to 50% member Dave, $10,000 to member Ethan for consulting services, and $10,000 as a distribution to member Olivia. In addition, the LLC earned $2,000 of tax-exempt interest income during the year. Dave is the managing member of the LLC. Dave’s basis in his LLC interest was $50,000 at the beginning of the year, and includes a $12,000 share of LLC liabilities. At the end of the year, his share of the LLC’s liabilities was $20,000 What is the maximum amount Dave might be able to deduct for this business (QBI)?

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Answer #1
Revenues 100,000
business expenses -25,000
distribution to member Olivia -5,000
member Ethan for consulting services -5,000
tax-exempt interest income 1,000
QBI 66,000
Deduction (20% of QBI) 13200
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