Chapter 10

Question 1

Social Security Percentage:

Answer 1

6.2% or
12.4% for Self Employment

Question 2

Medicare percentage:

Answer 2

1.45% or
2.9% S-E

Question 3

Contribution factory S-E

Answer 3

.009 or .9%

Question 4

What do you multiply net income by first? (S-E)

Answer 4

.9235 (1-.0765 ss and Medicare)

Question 5

Married Threshold:

Answer 5

250,000

Question 6

QBI Deduction: Lower of __

Answer 6

1) business income X 20%
2) Wage Limitation: higher of
a) .5 X w2 wages paid or
b) sum: 25% of W2 wages plus 2.5% of the unadjusted basis of tangible business property (depreciable)
3) 20% of Taxable Income

Question 7

S-Corporations: 3 requirements

Answer 7

1) Individuals (no nonresident aliens), estates, certain trusts, and tax exempt organizations can be shareholders
2) No more than 100 shareholders (families may elect to be treated as one shareholder)
3) Only one class of stock

Question 8

DRD %

Answer 8

Less than 20% ownership; 50% drd
20-80% ownership; 65% drd
80+ ownership; 100% drd