Alice, who is single, owns 100% of the stock in an S corporation, which manufactures parts for autos and trucks. The fol
Posted: Sat May 07, 2022 7:57 pm
Alice, who is single, owns 100% of the stock in an S
corporation, which manufactures parts for autos and trucks. The
following information concerns the S corp for the year 2021:
Ordinary business income (i.e., QBI): $6,000,000
W-2 wages paid: 2,000,000
Total unadjusted basis of fixed assets held by the corporation:
5,000,000
Assuming Alice's taxable income before the QBI deduction is
$6,500,000 (this is also her modified taxable income), calculate
her qualified business income (QBI) deduction for 2021.
SHOW COMPUTATIONS PLEASE
corporation, which manufactures parts for autos and trucks. The
following information concerns the S corp for the year 2021:
Ordinary business income (i.e., QBI): $6,000,000
W-2 wages paid: 2,000,000
Total unadjusted basis of fixed assets held by the corporation:
5,000,000
Assuming Alice's taxable income before the QBI deduction is
$6,500,000 (this is also her modified taxable income), calculate
her qualified business income (QBI) deduction for 2021.
SHOW COMPUTATIONS PLEASE