Klein, a master's degree candidate at Blair University, was awarded a 12,000 scholarship from Blair in Year 8. The scholarship was used to pay Klein's Year 8 university tuition and fees. Also in Year 8, Klein received 5,000 for teaching two courses at a nearby college. What amount is includable in Klein's Year 8 gross income?()
A. $0
B. $5,000
C. $12,000
D. $17,000
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Miyasyke, Inc., a calendar year S corporation, has 5 equal shareholders at the end of the tax year. Miyasyke had 75,000 of taxable income. Miyasyke made distributions to its shareholders of 32,000 each, for a total of 160,000. Each shareholder's basis in the S corporation is $100,000 at the beginning of the tax year. What amount from Miyasyke should be included in each shareholder's gross income?()
A. $0
B. $15,000
C. $32,000
D. $47,000
Passive activity losses of an individual taxpayer can generally be used to offset:()
A. Income from the rental of a residence.
B. A guaranteed payment received from a partnership.
C. Dividend income from a foreign corporation.
D. Interest income on S. Treasury notes.
What is the basic deduction calculation for the qualifying business income deduction?
A. 30% × Qualifying business income (QBI)
B. 20% × W-2 wages
C. 20% × Qualifying business income (QBI)
D. 30% × W-2 wages
Calculate the taxpayer's qualifying business income deduction for a specified service trade or business: Filing status: Single Taxable income: $300,000 Net capital gains: $0 Qualified business income (): $50,000 W-2 wages: $10,000()
A. $15,000
B. $5,000
C. $60,000
D. $0