Questions from Federal Taxation

Q: Mark and Lucy owned two stocks, Tinker Inc., and Chance

Mark and Lucy owned two stocks, Tinker Inc., and Chance Inc., that became worthless during year 8. The adjusted basis in Tinker was $300,000. Tinker was incorporated in year 2, and Mark and Lucy purch...

Q: Mark and Lucy owned two stocks, Tinker Inc., and Chance

Mark and Lucy owned two stocks, Tinker Inc., and Chance Inc., that became worthless during year 8. The adjusted basis in Tinker was $80,000. Tinker was incorporated in year 2, and Mark and Lucy purcha...

Q: Data, Inc., purchased and placed in service $5,

Data, Inc., purchased and placed in service $5,000 of office furniture on August 24, year 3. This is the only asset purchase during the year. Code § 179 expensing and bonus depreciation we...

Q: Bob and Nancy are married and file a joint return in 2020

Bob and Nancy are married and file a joint return in 2020. They are both under age 50 and employed, with wages of $50,000 each. Their total AGI is $112,000. Neither of them is an active participant in...

Q: Where is the deduction for qualified business income (QBI) applied

Where is the deduction for qualified business income (QBI) applied in the individual tax formula? a. As an adjustment to arrive at adjusted gross income b. As an itemized deduction c. As an alternativ...

Q: Which of the following is considered a specified service trade or business

Which of the following is considered a specified service trade or business (SSTB) for purposes of the qualified business income deduction? a. Accounting firm b. Manufacturing company c. Engineering fi...

Q: What is the basic deduction calculation for the qualified business income deduction

What is the basic deduction calculation for the qualified business income deduction? a. 30% 3 Qualified business income (QBI) b. 20% 3 W–2 wages c. 20% 3 Qualified business income (QBI) d. 30% 3 W–2 w...

Q: Which of the following is the overall limitation to the qualified business

Which of the following is the overall limitation to the qualified business income (QBI) deduction? a. Lesser of 50% of combined QBI or 20% of the taxpayer’s taxable income in excess of net capital gai...

Q: Calculate the taxpayer’s 2021 qualified business income deduction for a qualified trade

Calculate the taxpayer’s 2021 qualified business income deduction for a qualified trade or business: Filing status: …………………………………………….Single Taxable income: ………………………………….$100,000 Net capital gains: …...

Q: Calculate the taxpayer’s 2021 qualified business income deduction for a qualified trade

Calculate the taxpayer’s 2021 qualified business income deduction for a qualified trade or business: Filing status: ……………………………………………………………..Single Taxable income: ……………………………………………………$180,000 Net cap...