Required information [The following information applies to the questions displayed below.] Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $90,000 of business income from WCC for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self- employment tax (Jacob has salary in excess of the wage base limitation) and 0.9 percent additional Medicare tax. Note: Round your intermediate calculations to the nearest whole dollar amount. b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob qualifies for the full QBI deduction? > Answer is complete but not entirely correct. $ 30,060 Tax owed if income is QBI
Required information [The following information applies to the questions displayed below.] Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $90,000 of business income from WCC for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self- employment tax (Jacob has salary in excess of the wage base limitation) and 0.9 percent additional Medicare tax. Note: Round your intermediate calculations to the nearest whole dollar amount. b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob qualifies for the full QBI deduction? > Answer is complete but not entirely correct. $ 30,060 Tax owed if income is QBI
Chapter15: Taxing Business Income
Section: Chapter Questions
Problem 14CE
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $90,000 of business income from WCC
for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-
employment tax (Jacob has salary in excess of the wage base limitation) and 0.9 percent additional Medicare tax.
Note: Round your intermediate calculations to the nearest whole dollar amount.
b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob
qualifies for the full QBI deduction?
> Answer is complete but not entirely correct.
Tax owed if income is QBI
$ 30,060 x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F850dce20-b1b5-49ca-887c-59db28a9516d%2Fb55a3218-ff51-414d-a2c8-a778b21e714e%2Fq0mhu6a_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $90,000 of business income from WCC
for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-
employment tax (Jacob has salary in excess of the wage base limitation) and 0.9 percent additional Medicare tax.
Note: Round your intermediate calculations to the nearest whole dollar amount.
b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob
qualifies for the full QBI deduction?
> Answer is complete but not entirely correct.
Tax owed if income is QBI
$ 30,060 x
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