Question 1

Carol and Candace are equal partners in Peach Partnership. In the current year, Peach had a net profit of $75,000 ($250,000 gross income - $175,000 operating expenses) and distributed $25,000 to each partner. Peach must pay tax on $75,000 of income.

Accepted Answer

A) True 
 B)False

Question 2

Jansen, a single taxpayer, owns and operates a restaurant (as a sole proprietorship). The business is not a specified services business. In 2019, the business pays $125,000 in W-2 wages, has $187,500 of qualified property, and $437,500 in net income (all of which is qualified business income). Jansen has no other items of income or loss and will take the standard deduction. What is Jansen's qualified business income deduction?

Accepted Answer

Jansen's taxable income before the QBI d...

Question 3

An individual in a specified service business, such as accounting, with taxable income over the threshold amounts ($210,700, or $421,400 if married filing jointly in 2019) , will not lose the QBI deduction on such income if:

Accepted Answer

A)   Taxable income exceeds the thresholds due to income of a spouse.
B)   Taxable income did not exceed the thresholds in the prior three years.
C)   Taxable income exceeds the thresholds because of net capital gain income.
D)   None of these.E) All of the above
F) A) and C)

Question 4

Eagle Company, a partnership, had a short-term capital loss of $10,000 during the current year. Aaron, who owns
25% of Eagle, will report $2,500 of Eagle's short-term capital loss on his individual tax return.

Accepted Answer

A) True 
 B)False

Question 5

Jason and Paula are married. They file a joint return for 2019 on which they report taxable income before the QBI deduction of $200,000. Jason operates a sole proprietorship, and Paula is a partner in the PQRS Partnership. Both are a qualified trade or business and neither is a specified services business. Jason's sole proprietorship reports $150,000 of net income, W-2 wages of $45,000, and has qualified property of $50,000. Paula's partnership reports a loss for the year, and her allocable share of the loss is $40,000. The partnership reports no W-2 wages and Paula's share of the partnership's qualified property is $20,000. What is their qualified business income deduction for the year?

Accepted Answer

A)   $-0-.
B)   $11,750.
C)   $22,000.
D)   $30,000.
E)   None of these.F) A) and E)
G) C) and D)

Exam 15: Taxing Business Income

An individual in a specified service business, such as accounting, with taxable income over the threshold amounts ($210,700, or $421,400 if married filing jointly in 2019) , will not lose the QBI deduction on such income if:

Correct Answer
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Correct Answer
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Eagle Company, a partnership, had a short-term capital loss of $10,000 during the current year. Aaron, who owns 25% of Eagle, will report $2,500 of Eagle's short-term capital loss on his individual tax return.

Correct Answer
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Carol and Candace are equal partners in Peach Partnership. In the current year, Peach had a net profit of $75,000 ($250,000 gross income - $175,000 operating expenses) and distributed $25,000 to each partner. Peach must pay tax on $75,000 of income.

Correct Answer
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Correct Answer
verified
Jansen's taxable income before the QBI d...
View Answer

Exam 15: Taxing Business Income

An individual in a specified service business, such as accounting, with taxable income over the threshold amounts ($210,700, or $421,400 if married filing jointly in 2019) , will not lose the QBI deduction on such income if:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Eagle Company, a partnership, had a short-term capital loss of $10,000 during the current year. Aaron, who owns 25% of Eagle, will report $2,500 of Eagle's short-term capital loss on his individual tax return.

Correct AnswerverifiedShow Answer

Carol and Candace are equal partners in Peach Partnership. In the current year, Peach had a net profit of $75,000 ($250,000 gross income - $175,000 operating expenses) and distributed $25,000 to each partner. Peach must pay tax on $75,000 of income.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedJansen's taxable income before the QBI d...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified
Jansen's taxable income before the QBI d...
View Answer