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Scenario
Craft Beer Brewing Partnership
| Revenues | 681,000 |
| Office Rent | 28,000 |
| COGS | 198,000 |
| Salaries | 238,000 |
| ST Gain on Sale of Stock | 100,000 |
| LT Loss on Sale of Stock | 500,000 |
| Contributions to Charities | 60,000 |
| Investment Expenses | 6,000 |
Friends Dan and Lisa are each partners in the beer brewing partnership above.
Dan owns 3%
Lisa owns 6%
Additional Information about Dan (not including partnership info)
Married, 1 child
Wages from job = $18,000
Wages from wifes job = $31,000
Additional Information about Lisa (not including partnership info)
Single, no children
Wages from job = 130,000
Sold stock held LT at a gain of 25,000
Paid state taxes of 8,900
Paid qualified mortgage interest of 10,000
1. By how much does Dans AGI increase because of the partnership activities?
2. By how much does Lisas taxable income decrease because of the partnership activities?
Answer & Explanation
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