Exam3Solution - C Corp Solution C Corp Tax Willie Income...

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C Corp Solution C Corp Tax Willie Total Income Gross Profit 175,000 Management Fee 90,000 C Corp Income Tax 6,870$ Dividend Income 15,000 Dividend Income (from Wildcat) 40,000 Willie Income and SE Tax 33,477 Less: 1/2 SE Tax (6,358) Total Tax 40,347$ Total Income 190,000 AGI 123,642 Less: Standard Ded (5,700) Less: P.E. (3,650) Taxable Income 114,292 Expenses Tax Tax on Dividend 6,000 Management Fee to Willie 90,000 Tax on O.I. 14,760 Rent 25,000 SE Tax 12,717 Only the management fee is subject to self-employment tax. Utilities 10,000 Total Individual Tax 33,477$ Insurance 2,200 Total deductions b/f CC or DRD 127,200 Taxable Income B4 CC, DRD 62,800 Less: CC (5,000) limited to 10%(62,800) = 6,280 Less: DRD (12,000) Taxable Income 45,800$ Tax 6,870 Partnership Solution Partnership Ordinary Income Willie Gross Profit 175,000 Ordinary Income from Pship 47,800 Management Fee 90,000 Expenses: Dividend from Pship 15,000 Management Fee to Willie 90,000 Rent 25,000 Less: 1/2 SE Tax (8,467) Utilities 10,000 AGI 144,333 Insurance 2,200 Less: Standard Deduction (5,700) CC too small Less: PE (3,650) Total Expenses 127,200 Taxable Income
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  • Spring '10
  • Goldwater,Canada,Judd,Byrd,Theniel
  • Taxation in the United States, SE tax, Management fee

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