Amit is a limited partner in Reynolds Partnership. This year, Amit's Schedule K-1 from Reynolds...
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Amit is a limited partner in Reynolds Partnership. This year, Amit's Schedule K-1 from Reynolds reflected $50,000 of ordinary income, $1,000 of interest income, and a cash distribution of $35,000. Amit's marginal tax rate is 37 percent. Amit qualifies for the QBI deduction, without regard to the wage or taxable income limitations.
a. Calculate the tax cost of Amit's partnership earnings this year.
b. Calculate Amit's after-tax cash flow from his partnership activity this year.
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