Lisa is a member of Bigfoot LLC, which runs a retail business in which she is active. For the current year, her K-1 shows: guaranteed payment, $40,000; ordinary income, $65,000; LTCG, 5,000; cash distribution, $97,000. Lisa is single and has no dependents and no other income. Assuming that all Bigfoot income is self- employment income, compute her self- employment tax. Compute her AGI. c. Compute her income tax liability
Lisa is a member of Bigfoot LLC, which runs a retail business in which she is active. For the current year, her K-1 shows: guaranteed payment, $40,000; ordinary income, $65,000; LTCG, 5,000; cash distribution, $97,000. Lisa is single and has no dependents and no other income. Assuming that all Bigfoot income is self- employment income, compute her self- employment tax. Compute her AGI. c. Compute her income tax liability
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 49P
Related questions
Question
100%
Transcribed Image Text:Lisa is a member of Bigfoot LLC, which runs a
retail business in which she is active. For the
current year, her K-1 shows: guaranteed
payment, $40,000; ordinary income, $65,000;
LTCG, 5,000; cash distribution, $97,000. Lisa
is single and has no dependents and no other
income.
a. Assuming that all Bigfoot income is self-
employment income, compute her self-
employment tax.
p. Compute her AGI.
c. Compute her income tax liability
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT