Answered

Find answers to your most challenging questions with the help of IDNLearn.com's experts. Get prompt and accurate answers to your questions from our experts who are always ready to help.

ennifer's pass-through business has total qualified business income of $100,000 and combined REIT dividends/PTP income of $20,000. Since her taxable income of $150,000, including $10,000 of net capital gain, is below the applicable threshold, what is her pass-through deduction

Sagot :

Answer:

the lesser amount is $24,000

Explanation:

The computation of the pass through deduction is as follows;

For that the following lesser amount should be considered

1.  The qualified business income should be 20% and the total REIT dividend ...

2. There is 20% of taxable income less net capital gain

So now the calculation is

1. 20% × ($100,000 + $20,000)

= $24,000

And,

2. 20% × ($150,000 - $10,000)

= $28000

So the lesser amount is $24,000

hence, the same is relevant

Thank you for joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! IDNLearn.com is dedicated to providing accurate answers. Thank you for visiting, and see you next time for more solutions.