Myles and Regina each own 50% of Lakewood Consulting, Inc.,…
Myles and Regina each own 50% of Lakewood Consulting, Inc., which has elected S corporation status. In the current tax year, Lakewood earns $200,000 of net income but makes no cash distributions to either shareholder. Myles is in the 32% marginal tax bracket. Which of the following best describes the income tax consequence to Myles for the current year?
Read DetailsIn year 1, Austin earns $700 from delivering papers for a ne…
In year 1, Austin earns $700 from delivering papers for a newspaper company. He is treated as self-employed. In year 2 the newspaper company hires him as an employee and pays him $700 as W-2 income with no federal or state income tax withheld. Is Austin required to file an income tax return in either year?
Read DetailsAlistair and Ling Parks are married and file jointly. Their…
Alistair and Ling Parks are married and file jointly. Their MAGI for this year is $72,000. They have two dependent children: Hana, who is completing her second year of college and is enrolled full-time in a degree program with no felony drug conviction, and Jiro, who is a licensed electrician taking a continuing education course to improve his job skills at a local community college. Alistair and Ling paid $4,500 in qualified tuition for Hana and $3,000 for Jiro’s course. What is the maximum combined education credit the Parks may claim for this year?
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