Questions from Federal Taxation

Q: Melanie is employed full-time as an accountant for a national

Melanie is employed full-time as an accountant for a national hardware chain. She recently started a private consulting practice, which provides tax advice and financial planning to the general public...

Q: Shelly has $200,000 of QBI from her local jewelry

Shelly has $200,000 of QBI from her local jewelry store (a sole proprietorship). Shelly’s proprietorship paid $30,000 in W–2 wages and has $20,000 of qualified property. Shelly’s spouse earned $75,100...

Q: Tyler, a self-employed taxpayer, travels from Denver to

Tyler, a self-employed taxpayer, travels from Denver to Miami primarily on business. He spends five days conducting business and two days sightseeing. His expenses are $400 (airfare), $150 per day (me...

Q: Peter owns and manages his single-member LLC that provides a

Peter owns and manages his single-member LLC that provides a wide variety of financial services to his clients. He is married and will file a joint tax return with his spouse, Marta. His LLC reports $...

Q: Ashley (a single taxpayer) is the owner of ABC LLC

Ashley (a single taxpayer) is the owner of ABC LLC. The LLC (which reports as a sole proprietorship) generates QBI of $900,000 and is not a “specified services” business. ABC paid total W–2 wages of $...

Q: Donald (a married taxpayer filing jointly) owns a wide variety

Donald (a married taxpayer filing jointly) owns a wide variety of commercial rental properties held in a single-member LLC. Donald’s LLC reports rental income of $1,500,000. The LLC pays no W–2 wages;...

Q: Scott and Laura are married and will file a joint tax return

Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a “specified services” business) that generates qualified business income of $300,000. The proprietor...

Q: Ben and Molly are married and will file jointly. Ben generates

Ben and Molly are married and will file jointly. Ben generates $300,000 of qualified business income from his single-member LLC (a law firm). He reports his business as a sole proprietorship. Wages pa...

Q: Tristan, who is single, operates three sole proprietorships that generate

Tristan, who is single, operates three sole proprietorships that generate the following information in 2021 (none are “specified services” businesses). Tristan choo...

Q: Compute the taxable income for 2021 for Aiden on the basis of

Compute the taxable income for 2021 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2019. Salary………………………………………………………………………………………………...