Katie a single taxpayer is a shareholder in Engineers One a civil engineering company This year Katie s share of net business

Question

Katie a single taxpayer is a shareholder in Engineers One a civil engineering company This year Katie s share of net business income from Engineers One is 200 000 net of the associated for AGI self employment tax deduction Assume that Katie s allocation of wages paid by Engineers One to its employees is 300 000 and her allocation of Engineers One s qualified property is 150 000 unadjusted basis of equipment all purchased within past three years Assume Katie has no other business income and no capital gains or qualified dividends Her taxable income before the deduction for qualified business income is 400 000 Required a Calculate Katie s deduction for qualified business income b Assume the same facts provided above except Katie s net business income from Engineers One is 400 000 net of the associated for AGI self employment tax deduction and her taxable income before the deduction for qualified business income is 350 000 Part a Part b

Kunduz · Accepted Answer

Click to see the answer