UniversityEssayServices

Jane Marshall is a shareholder and employee in a corporation that is organized as a pass-through S corporation. The business IS NOT a Specialized Service Trade or Business (SSTB). Jane receives a salary and bonus of $180,000. $80,000 of business income is also passed through to her from the corporation. Jane files a joint return with her spouse, Jake, and takes the $25,100 standard deduction. The couple have $220,000 of other income including Jake's salary.

Jane's portion of 50% of W-2 wages for the corporation's employees is $50,000 and that amount is higher than the wage/capital limitation.

Which statement regarding the deduction for Qualified Business Income correctly applies to this taxpayer?

Question options:

Jane will receive a QBI deduction of 20% of $80,000 as the wage limitation isn't binding in these circumstances.
Jane is not entitled to a QBI deduction.
Jane will be entitled to a reduced QBI deduction because of her income level.

 

Share this :
Share on facebook
Share on twitter
Share on whatsapp
Share on pinterest

Found something interesting ?

• On-time delivery guarantee
• PhD-level professional writers
• Free Plagiarism Report

• 100% money-back guarantee
• Absolute Privacy & Confidentiality
• High Quality custom-written papers

Related Model Questions

Feel free to peruse our college and university model questions. If any our our assignment tasks interests you, click to place your order. Every paper is written by our professional essay writers from scratch to avoid plagiarism. We guarantee highest quality of work besides delivering your paper on time.

Special Offer

Use the Coupon Code: SAVE25 to save 25% on your next order.
SAVE