QUESTION 3 Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $110,000 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 and .9 percent additional Medicare tax. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income? QUESTION 4 Same facts as in Question 3 above. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QB) and Jacob qualifies for the full QBI deduction?

QUESTION 3 Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $110,000 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 and .9 percent additional Medicare tax. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income? QUESTION 4 Same facts as in Question 3 above. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QB) and Jacob qualifies for the full QBI deduction?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 19P

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