Login

Zofia is self-employed, files a Schedule C, and owns a qualified business for calculation of...

50.1K

Verified Solution

Question

Accounting

Zofia is self $-$ employed, files a Schedule C $,$ and owns a qualified business for calculation of QBI. Zofia had $ $78, 000$ in taxable business income on Schedule C $.$ On $10 / 30 / 2022,$ Zofia sold some office equipment for $ $6, 600$ that was purchased on $04 / 01 / 2019$ for a cost of $ $8, 250 .$ The office equipment is being depreciated over seven year MACRS half $-$ year convention. Zofia has no other qualified businesses. Zofia's taxable income for the income limitation is $ $102, 000 . ($ Hint: it will be useful to use information from Chapter $6,$ Form $8995,$ Schedule $1,$ and Form $1040$ as a guide. $)$ Use Table $6$ A $- 1$

Required:

a $.$ What is the Section $1245$ depreciation recapture $($ if any $)$ on the sale of the office equipment?

b $.$ What is the self $-$ employment deduction on the income from Zofia's business?

c $.$ What is Zofia's Qualified Business Income $($ QBI $)$ for Form $8995 ?$

d $.$ What is Zofia's Qualified Business Income Deduction $($ QBID $)$ for Form $8995 ?$

e $.$ Assuming there are no other items for Form $8995,$ what amount $($ s $)$ will be entered on Line $13$ of Form $1040 ?$

f $.$ Assuming there are no other items for Schedule $1,$ what amount $($ s $)$ will be entered on Line $8$ of Form $1040 ?$

g $.$ Assuming there are no other items for Schedule $1,$ what amount $($ s $)$ will be entered on Line $10$ a of Form $1040 ?$

Answer & Explanation Solved by verified expert

answer-section

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Other questions asked by students

1 Answer

$0.99

~~$1.99~~

(Save $1 )

One time Pay

No Ads
Answer to 1 Question
Get free Zin AI - 50 Thousand Words per Month

Best

Unlimited

$4.99*

~~$9.99~~

(Save $5 )

Billed Monthly

No Ads
Answers to Unlimited Questions
Get free Zin AI - 3 Million Words per Month

*First month only

Free

$0

Get this answer for free!
Sign up now to unlock the answer instantly

You can see the logs in the Dashboard.

Sign In

Don't have an account? Sign Up