Jorge is a 100 percent owner of JJ LLC (taxed as an S Corporation) . He works full-time for JJ and his marginal ordinary tax rate is 37 percent. Which of the following statements is True regarding Jorge's tax treatment of business income allocated to him from JJ?
A) Business income allocations are subject to self-employment tax.
B) Business income allocations are not subject to the net investment income tax.
C) Business income allocations are subject to the additional Medicare tax.
D) Business income allocations are taxed at a maximum 23.8 percent tax rate.
Correct Answer:
Verified
Q44: Explanation: Owners of unincorporated entities can be
Q57: Which tax classifications can potentially apply to
Q59: Which of the following statements is True
Q60: Logan, a 50 percent shareholder in Military
Q64: In its first year of existence (2018),
Q65: Which of the following statements is True
Q67: Rodger owns 100% of the shares in
Q73: What is the maximum number of unrelated
Q75: For which type of entity does the
Q79: The excess loss limitations apply to owners
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents