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Homework answers / question archive / Required information [The following information applies to the questions displayed below
Required information [The following information applies to the questions displayed below.) Mason (single) is a 50 percent shareholder in Angels Corp. (an S Corporation). Mason receives a $190,000 salary working full time for Angels Corp. Angels Corp. reported $440,000 of taxable business income for the year (2020). Before considering his business income allocation from Angels and the self-employment tax deduction (if any), Mason's adjusted gross income is $190,000 (all salary from Angels Corp.). Answer the following questions for Mason. (Leave no answer blank. Enter zero if applicable.) a. Assuming the income allocated to Mason is qualified business income, what is Mason's deduction for qualified business income? Mason's deduction for qualified business income
As per US tax law deduction salf employment tax of 15.3% will be applicable on salary of Mason which is $ 190,000/-
So = 190,000 - (190,000 X 15.3%) = $ 160930/-
Assuming the income allocated to Mason is quali?ed business income,
what is Mason's deduction for qualified business income? = $ 160930/- (After deducting self-employment tax)
Mason's deduction for quali?ed business income = $ 32186/-
Net Income of Mason is $ 128,744/-
