Question 12Georgina Rockwell, an unmarried person, is a partner in a law firm. She receives aguaranteed payment of $200,000 and a pass-through profit share of $100,000.Describe the correct tax treatment regarding the Qualified Business IncomeDeduction is Georgina's case.She is entitled to a Qualified Business Income Deduction equal to 20% ofQualified Business IncomeShe is entled to a Qualified Business Income Deduction equal to 20% ofModified Taxable IncomeShe is entitled to a reduced Qualified Business Income Deduction (below thelesser of 20% of Qualified Business Income or 20% of modified taxable income)She is not entitled to a Qualified Business Income DeductionQuestion 13Rupert Davis, an unmarried person, is a part owner of an S corporation that operatesmultiple food trucks. He receives compensation of $30,000 and a pass-throughprofit share of $80,000. He also has significant income outside of the business. Hismodified taxable income (before the QBI deduction) is $187,000.Rupert's share of 50% of W-2 wages is $10,000 and his share of the unadjusted basisof tangible property used in the business is $80,000.Describe the çorrect tax treatment regarding the Qualified Business IncomeDeduction is Rupert's case.O He is entitled to a Qualified Business Income Deduction equal to 20% ofQualified Business IncomeHe is entitled to a Qualified Business Income Deduction equal to 20% ofModified Taxable IncomeHe is entitled to a reduced Qualified Business Income Deduction (below thelesser of 20% of Qualified Business Income or 20% of modified taxable income)He is not entitled to a Qualified Business Income Deduction

Qualified business income specifically excludes the fallowing

Question 12 Georgina Rockwell, an unmarried person, is a partner in a law firm. She receives a guaranteed payment of $200,000 and a pass-through profit share of $100,000. Describe the correct tax treatment regarding the Qualified Business Income Deduction is Georgina's case. She is entitled to a Qualified Business Income Deduction equal to 20% of Qualified Business Income She is entled to a Qualified Business Income Deduction equal to 20% of Modified Taxable Income She is entitled to a reduced Qualified Business Income Deduction (below the lesser of 20% of Qualified Business Income or 20% of modified taxable income) She is not entitled to a Qualified Business Income Deduction

Question 12 Georgina Rockwell, an unmarried person, is a partner in a law firm. She receives a guaranteed payment of $200,000 and a pass-through profit share of $100,000. Describe the correct tax treatment regarding the Qualified Business Income Deduction is Georgina's case. She is entitled to a Qualified Business Income Deduction equal to 20% of Qualified Business Income She is entled to a Qualified Business Income Deduction equal to 20% of Modified Taxable Income She is entitled to a reduced Qualified Business Income Deduction (below the lesser of 20% of Qualified Business Income or 20% of modified taxable income) She is not entitled to a Qualified Business Income Deduction

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 35P

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