Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. jacob is a member of wcc (an llc taxed as a partne

Jacob is a member of WCC (an LLC taxed as a partnership). Jacobwas allocated...

80.2K

Verified Solution

Question

Accounting

Jacob is a member of WCC (an LLC taxed as a partnership). Jacobwas allocated $100,000 of business income from WCC for the year.Jacob's marginal income tax rate is 37%. The business allocation issubject to 2.9% of self-employment tax and 0.9% additional Medicaretax.

A) What is the amount of tax Jacob will owe on the incomeallocation if the income is not qualified business income?

B) What is the amount of tax Jacob will owe on the incomeallocation if the income is qualified business income (QBI) andJacob qualifies for the full QBI duduction?

Answer & Explanation Solved by verified expert
3.8 Ratings (497 Votes)
A 40014 Computation Amount Description 1 Business income allocation 100000 2 QBI deduction 0 income does not qualify 3 Deduction for 50 percent of SE tax 1339 1 09235    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

In: AccountingJacob is a member of WCC (an LLC taxed as a partnership). Jacobwas allocated $100,000...Jacob is a member of WCC (an LLC taxed as a partnership). Jacobwas allocated $100,000 of business income from WCC for the year.Jacob's marginal income tax rate is 37%. The business allocation issubject to 2.9% of self-employment tax and 0.9% additional Medicaretax.A) What is the amount of tax Jacob will owe on the incomeallocation if the income is not qualified business income?B) What is the amount of tax Jacob will owe on the incomeallocation if the income is qualified business income (QBI) andJacob qualifies for the full QBI duduction?

Other questions asked by students

Q

National Rentals has $59,000 shares of common stock outstanding at a market price of $36.00 a...

Finance
Q

For the function a) f(x)=x^3-9x^2+23x-15 b)f(x)=(x+3)^2(2x+1)(x-1) c)f(x)=-(x^2-6x+9)(x^2-x-6) Find: 1) the zeros 2) the y-intercept 3) left-right end behavior 4) the sketch of the...

Basic Math
Q

a plane electromagnetic wave travels in a lossless environment with physical properties ε = ε0, μ...

Physics
Q

positive There are no other fields of any kind in the region and no forces...

Physics
Q

Write number sentences to show your work a What is the largest answer you can...

Algebra
Q

Explain how you know that the sequence 109 105 101 97 93 is arithmetic

Algebra
Q

please help explain where my 475 is coming from? ...

Accounting
Q

inventory system, why are discounts credited to merchandise inventory? a. The discounts are debited to...

Accounting
Q

Prawit Company incurred an activity cort of $122,000 for inspecting 50,000 units of production. Management...

Accounting
Q

DeLoach Company incorporated on January 1, 2023 and had the following four common stock transactions...

Accounting
Q

2020 P6.9 Excel Essan Construction Inc., which has a calendar year end, has entered into...

Accounting
Q

Activity 1. You have been hired to undertake a review of the corporate governance requirements...

Accounting