Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified servi enerates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds qual nadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI d also their modified taxable income). . Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2022. QBI deduction 36,000 ✓ Taxable income 364.100
Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified servi enerates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds qual nadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI d also their modified taxable income). . Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2022. QBI deduction 36,000 ✓ Taxable income 364.100
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 25P
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Question
Answer the all step ASAP.
Transcribed Image Text:Problem 9-42 (LO. 6)
Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified services" business) that
generates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds qualified property with an
unadjusted basis of $10,000. Laura is employed by a local school district. Their taxable income before the QBI deduction is $400,100 (this
is also their modified taxable income).
a. Determine Scott and Laura's QBI deduction, taxable income, and tax liability for 2022.
QBI deduction
36,000
Taxable income
364,100
Tax liability
72,943 X
b. After providing you with the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in December
2022 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction, taxable
income, and tax liability for 2022.
QBI deduction
Taxable income
60,000 X
346,100 X
Tax liability
c. What is the marginal tax rate on Scott's bonus? Enter the percent to one decimal place.
42 X %
72,968 X
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