time for Omar (single) is a 50 percent owner in Cougar LLC (taxed as a partnership). Umar Works guaranteed payment of $50,000. Cougar LLC reported $450,000 of business income for the year (2023). Before considering his 50 percent business income allocation from Cougar and the self-employment tax deduction (if any Omar's adjusted gross income is $210,000 (includes $50,000 guaranteed payment from Cougar and $180,000 sa a different employer). Omar reports itemized deductions of $40,000. Answer the following questions for Omar. Note: Leave no answer blank. Enter zero if applicable. Round your Intermediate calculations and final answers nearest whole dollar.
time for Omar (single) is a 50 percent owner in Cougar LLC (taxed as a partnership). Umar Works guaranteed payment of $50,000. Cougar LLC reported $450,000 of business income for the year (2023). Before considering his 50 percent business income allocation from Cougar and the self-employment tax deduction (if any Omar's adjusted gross income is $210,000 (includes $50,000 guaranteed payment from Cougar and $180,000 sa a different employer). Omar reports itemized deductions of $40,000. Answer the following questions for Omar. Note: Leave no answer blank. Enter zero if applicable. Round your Intermediate calculations and final answers nearest whole dollar.
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 18P
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[The following information applies to the questions displayed below.)
Omar (single) is a 50 percent owner in Cougar LLC (taxed as a partnership). Omar works half time for Cougar and receives
guaranteed payment of $50,000. Cougar LLC reported $450,000 of business income for the year (2023). Before
considering his 50 percent business income allocation from Cougar and the self-employment tax deduction (if any).
Omar's adjusted gross income is $210,000 (includes $50,000 guaranteed payment from Cougar and $180,000 salary from
a different employer). Omar reports itemized deductions of $40,000. Answer the following questions for Omar.
Note: Leave no answer blank. Enter zero if applicable. Round your intermediate calculations and final answers to the
nearest whole dollar.
a. What is Omar's self-employment tax liability?
Self-employment tax liability
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