Taxpayer EligibleYes or No QBI deduction amount 1. Aretha is a married taxpayer filing jointly and a shareholder in Soul Corporation (not an S corporation). She owns 10% of the outstanding stock and the corporation generates $700,000 of taxable income from its business operations and distributes a $70,000 dividend to Aretha. Her total taxable income before the QBI deduction is $92,000. $fill in the blank 39ee3900a020fb0_2 2. Terri Jones is a single taxpayer and sole proprietor who operates a small chain of hair salons called The Bee Hive that specializes in obscure hair colors. Her business has no employees since all the stylists operate as independent contractors. The taxpayer identification number of the Bee Hive is 317-65-4321. Terri’s business generated business income of $120,000 in 2023. Her taxable income before any QBI deduction is $133,000. $fill in the blank 39ee3900a020fb0_4 3. Alice Delvecchio is married and files a joint return with her spouse, Chris Delvecchio. Alice operates a small family restaurant called D’s Pizza as a sole proprietor (taxpayer identification number 565-22-4321). She pays wages of $36,000, has qualified property with a basis of $67,000, and the QBI from the restaurant is $100,000. Chris has wages of $270,000 and their joint taxable income before the QBI deduction is $386,000 and includes $12,000 of qualified dividends.
Taxpayer EligibleYes or No QBI deduction amount 1. Aretha is a married taxpayer filing jointly and a shareholder in Soul Corporation (not an S corporation). She owns 10% of the outstanding stock and the corporation generates $700,000 of taxable income from its business operations and distributes a $70,000 dividend to Aretha. Her total taxable income before the QBI deduction is $92,000. $fill in the blank 39ee3900a020fb0_2 2. Terri Jones is a single taxpayer and sole proprietor who operates a small chain of hair salons called The Bee Hive that specializes in obscure hair colors. Her business has no employees since all the stylists operate as independent contractors. The taxpayer identification number of the Bee Hive is 317-65-4321. Terri’s business generated business income of $120,000 in 2023. Her taxable income before any QBI deduction is $133,000. $fill in the blank 39ee3900a020fb0_4 3. Alice Delvecchio is married and files a joint return with her spouse, Chris Delvecchio. Alice operates a small family restaurant called D’s Pizza as a sole proprietor (taxpayer identification number 565-22-4321). She pays wages of $36,000, has qualified property with a basis of $67,000, and the QBI from the restaurant is $100,000. Chris has wages of $270,000 and their joint taxable income before the QBI deduction is $386,000 and includes $12,000 of qualified dividends.
Chapter4: Managing Income Taxes
Section: Chapter Questions
Problem 6FPC
Related questions
Question
| Taxpayer | Eligible Yes or No |
QBI deduction amount | |
| 1. | Aretha is a married taxpayer filing jointly and a shareholder in Soul Corporation (not an S corporation). She owns 10% of the outstanding stock and the corporation generates $700,000 of taxable income from its business operations and distributes a $70,000 dividend to Aretha. Her total taxable income before the QBI deduction is $92,000. |
|
$fill in the blank 39ee3900a020fb0_2 |
| 2. | Terri Jones is a single taxpayer and sole proprietor who operates a small chain of hair salons called The Bee Hive that specializes in obscure hair colors. Her business has no employees since all the stylists operate as independent contractors. The taxpayer identification number of the Bee Hive is 317-65-4321. Terri’s business generated business income of $120,000 in 2023. Her taxable income before any QBI deduction is $133,000. |
|
$fill in the blank 39ee3900a020fb0_4 |
| 3. | Alice Delvecchio is married and files a joint return with her spouse, Chris Delvecchio. Alice operates a small family restaurant called D’s Pizza as a sole proprietor (taxpayer identification number 565-22-4321). She pays wages of $36,000, has qualified property with a basis of $67,000, and the QBI from the restaurant is $100,000. Chris has wages of $270,000 and their joint taxable income before the QBI deduction is $386,000 and includes $12,000 of qualified dividends. |
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