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Omar (single) is a 50 percent owner in Cougar LLC (taxed as a partnership). Omar...

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Accounting

Omar (single) is a 50 percent owner in Cougar LLC (taxed as a partnership). Omar works half time for Cougar and receives guaranteed payment of $50,000. Cougar LLC reported $450,000 of business income for the year (2020). Before considering his 50 percent business income allocation from Cougar and the self-employment tax deduction (if any), Omars adjusted gross income is $210,000 (includes $50,000 guaranteed payment from Cougar and $160,000 salary from a different employer). Answer the following questions for Omar. (Leave no answer blank. Enter zero if applicable.)

a. Assuming the income allocated to Omar is qualified business income, what is Omars deduction for qualified business income? (Round your final answer to the nearest whole dollar.)

b. What is Omars net investment income tax liability (assume no investment expenses)?

c. What is Omars self-employment tax liability (exclude the guaranteed payment)?

d. What is Omars additional Medicare tax liability?

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