Ben and Molly are married and will file jointly. Ben earns$300,000 from his single...

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Accounting

Ben and Molly are married and will file jointly. Ben earns$300,000 from his single member LLC (a law firm). He reports hisbusiness as a sole proprietorship. Wages paid by the law firmamount to $40,000; the law firm owns no significant property. Mollyis employed as a tax manager by a local CPA firm. Their modifiedtaxable income is $375,000 (this is also their taxable incomebefore the deduction for qualified business income). What is theirtentative QBI based on the W–2 Wages/Capital Investment Limit?

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As per IRS a single individual can form an LLC and remain a sole owner With the exception of regulatory requirements a sole owner will conduct daytoday operations in the same manner as he did as a sole proprietor A singlemember LLC is not regarded as a taxable entity by the IRS Profits and losses are reported on the single members personal tax return in the same manner as a sole proprietorship As per IRS in the year See Answer

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In: AccountingBen and Molly are married and will file jointly. Ben earns$300,000 from his single member...Ben and Molly are married and will file jointly. Ben earns$300,000 from his single member LLC (a law firm). He reports hisbusiness as a sole proprietorship. Wages paid by the law firmamount to $40,000; the law firm owns no significant property. Mollyis employed as a tax manager by a local CPA firm. Their modifiedtaxable income is $375,000 (this is also their taxable incomebefore the deduction for qualified business income). What is theirtentative QBI based on the W–2 Wages/Capital Investment Limit?