Is this statement True or False?
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Q: What tax forms are needed for the following example? Tim and Sarah Lawrence are married and filing a…
A: Step 1: Compute the taxable income for Tim and Sarah for the year for 2019.
Q: Jane and Ben are married and usually file a joint return. They live in a separate property state…
A: Section 199A of the Internal Revenue code deals with "Qualified business income deduction."
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A: Requirement 1: Compute QBI based on the W–2 Wages/Capital Investment Limit?
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A: working notes : NET Tax credit =Tax credit*number of child =2,000*2=4,000
Is this statement True or False?
The tax charged on various forms of legal business organizations varies. The partnership is the legal form of business entity but the entire net income is not charged for the taxation purpose under the Federal taxation system.
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- If Margo and Bruce purchase and operate an ice cream store, for tax purposes they have formed a partnership. True or FalseJane and Ben are married and usually file a joint return. They live in a separate property state (rather than a community property state). Jane is a partner in a law firm and typically generates income of $162,000. Ben is a grade school teacher with wage income of $75,000. The couple has investment income that is less than their standard deduction. With enactment of the deduction for qualified business income, the couple is wondering if they should continue to file as married filing jointly or instead use the married filing separately status. Why do they wonder this, and what advice would you offer them and why? If each spouse files separately, Jane's income is close to the threshold relevant for , such as the law firm. The use of the married filing jointly filing status will result in QBI deduction. Therefore, from a tax viewpoint, it would probably benefit Jane and Ben to file .Bert Baker and Ernestine Moffet were never formally married but have lived together as husband and wife for the last 14 years. Bert and Ernestine reside in Washington, D.C., a jurisdiction that recognizes common law marriages as valid. Consequently, they filed both a joint district income tax return and a joint federal income tax return for the last eight years. Bert and Ernestine are planning to move their household to Frederick, Maryland, and become permanent residents of that state. Maryland doesn’t recognize common law marriages. Will Bert and Ernestine’s change in residence allow them to avoid the marriage penalty by filing as single individuals?
- Suppose Sam and Cory are married and are deciding whether to use the filing status of Single or of Married filing jointly. Cory has a taxable income of $50,000 and Sam has a taxable income of $100,000. If they both file as Singles, together, how much would they owe in federal income taxes?Which of the following is an accurate statement regarding the filing of a joint tax return for military families? One spouse can prepare and sign the return and then send it to the other spouse to sign and file. The spouse of a member of the military may never sign for the service member on a joint return. The spouse of a member of the military may sign a join return if the service member is serving overseas and the spouse is still stateside. The spouse of a member of the military never needs a power of attorney in ore to file an MFJ tax return.Which one of the following conditions must be satisfied in order for a married taxpayer to be taxed on only his income if he resides in a community property state? a.The husband and wife must live apart for the entire year. b.The husband and wife must live apart for more than half the year. c.The husband and wife must be in the process of filing for a divorce. d.Only one of the spouses can be working and earning an income. e.None of these choices are correct.
- Lynn and Jack jointly own shares of stock of a corporation, have a joint bank account, and have purchased and own as tenants in common a piece of real estate. They share equally the dividends paid on the stock, the interest on the bank account, and the rent from the real estate. Without Lynn’s knowledge, Jack makes a trip to inspect the real estate and on his way runs over Samuel. Samuel sues Lynn and Jack for his personal injuries, joining Lynn as defendant on the theory that Lynn was Jack’s partner. Is Lynn a partner of Jack?If Nicanor, a CPA, established a partnership with Inday, a Certified Internal Auditor, to engaged in business consultancy service, the partnership is:a. Taxable as a corporationb. Is not allowed by lawc. A general professional partnershipd. Is exempted from taxation as the partners ae the ones liable for the taxWhat tax forms are needed for the following example? Tim and Sarah Lawrence are married and filing a joint return. Tim's social security number is 123-45-6789, and Sarah's social security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Debra, ages 12 and 16. Tim is a self-employed business person (sole proprietor of an unincorporated business) and Sarah a corporate executive. Tim has the following income and expenses from his business: Gross income $325,000Business Expenses $201.000 Records Related to Sarah's employment show the following:Salary $145,000Unreimbursed Travel (including $200 in meals) $1,600 Other pertinent information for the tax year include the following:Proceeds from the sale of stock acquired July 15, 2018 (cost $12,000) and sold August 1, 2018 for $9,800Proceeds from sale of stock acquired on September 18, 2017 (cost $5,000) and sold on October 5, 2018 for $3,800Wages paid to full-time…
- [The following information applies to the questions displayed below.] Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,150. Meg works part-time at the same university. She earns $33,450 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.) a. What is the Comers’ total income tax liability for 2019 (including income tax on wages) if they report the following capital gains and losses for the year? Short-term capital gains $ 9,090 Short-term capital losses (2,090 ) Long-term capital gains 15,170 Long-term capital losses (6,170 )James has just been audited by the IRS and, as a result, has been assessed a substantial deficiency (which he has not yet paid) in additional income taxes. In preparing his defense, James advances the following possibilities. Are any of them viable? Although a resident of Texas, James plans to sue in a District Court in Oregon that appears to be more favorably inclined toward taxpayers. If (a) is not possible, James plans to take his case to a Texas state court as he is more familiar with the practices there. Yes If he loses at the trial court level, James plans to appeal to either the Federal Circuit or the 11th Circuit Court of Appeals because he has relatives in both Washington D.C., and Atlanta. Staying with these relatives could save James lodging expense while his appeal is being heard by the court. Even if he does not win at the trial court or appeal court level, James feels certain of success on an appeal to the Supreme Court.Ekiya, who is single, has been offered a position as a city landscape consultant, the position pays $127,400 in wages. Assume Ekiya has no dependents. Ekiya deducts the standard deduction instead of itemized deductions, she is not eligible for the quailed business income deduction, and she did not make any charitable donations.
