As Susan is self employed, her contribution $56,000 (as of 2019) or 100% of eligible compensation (300,000) whichever is less.
Therefore, maximum amount Susan can deduct for contribution to a defined contribution Keogh plan is $ 56,000.
Problem 11-35 (LO. 6) In 2019, Susan's sole proprietorship earns $300,000 of self-employment net income (after the ded...
In 2018, Susan's sole proprietorship earns $300,000 of self-employment net income (after the deduction for one-half of self-employment tax). a. The maximum amount that Susan can deduct for contributions to a defined contribution Keogh plan is? b. Suppose Susan contributes more than the allowable amount to the Keogh plan. What are the consequences to her? Contributions in excess of the allowable amount under § 415 are not deductible, and they may be subject to a _______ % excise tax.
Problem 19-38 (LO. 2, 4, 5, 6) In 2018, Susan's sole proprietorship earns $300,000 of self-employment net income (after the deduction for one-half of self-employment tax). a. The maximum amount that Susan can deduct for contributions to a defined contribution Keogh plan is $ 54,000 x Feedback Check My Work Self-employed individuals (e.g., partners and sole proprietors) and their employees are eligible to receive qualified retirement benefits under the SIMPLE plans or under what are known as H.R. 10 (Keogh)...
Eliza is a self-employed attorney with earned income from the business of $143,000 (after the deduction for one-half of her self-employment tax). She has a profit-sharing plan (e.g., defined contribution Keogh plan). The maximum amount Eliza can contribute to her retirement plan in 2018 is $_______________.
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...
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 2020, the business pays $60,000 of W-2 wages, has $150,000 of qualified property, and generates $200,000 of qualified business income. Susan also has a part-time job earning wages of $11,100 and receives $3,300 of interest income. Her standard deduction is $12,400. Assume the QBI amount is net of the self-employment tax deduction. What...
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?
Bellina is a self-employed architect with earned income from the business of $276,000 (after the deduction for one-half of her self-employment tax). She has a profit-sharing plan (e.g., defined contribution Keogh plan). The maximum amount Bellina can contribute to her retirement plan in 2018 is $ .
Audric is a self-employed landscaper with earned income from the business of $234,000 (after the deduction for one-half of his self-employment tax). He has a profit-sharing plan (e.g., defined contribution Keogh plan). The maximum amount Audric can contribute to his retirement plan in 2018 is $_______________.
11. Gary is a self-employed CPA whose 2018 net earnings from his trade or business (before the H.R. 10 plan contribution but after the deduction for one-half of self-employment taxes) is 225,000. What is the maximum contribution that Gary can make on his behalf (Keogh) plan in 2018? A) $18,500 B) $45,000 C) $55,000 D) $60,000 to his H.R. 10 12. A partnership plans to set up a retirement plan to benefit the partners and the employees. All of the...
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...