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Sagot :
Answer:
To calculate Mason's deduction for qualified business income (QBI), we first determine his share of Angels Corporation's taxable income. Since Mason is a 50 percent shareholder, his share of the taxable business income is 50% of $442,000, which equals $221,000.
Now, Mason's adjusted gross income (AGI) is his salary from Angels Corporation, which is $190,500. This means his QBI deduction cannot exceed 20% of his AGI. So, 20% of $190,500 equals $38,100.
However, Mason's share of taxable income from Angels Corporation exceeds his QBI deduction based on AGI. Therefore, Mason's deduction for qualified business income would be limited to the lesser of:
1. 20% of his share of taxable business income from Angels Corporation, which is $221,000 * 20% = $44,200.
2. 20% of his adjusted gross income, which is $38,100.
Since $38,100 is less than $44,200, Mason's deduction for qualified business income would be $38,100.
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