Mason (single) is a 50 percent shareholder in Angels Corp. (an S Corporation). Mason receives a $182,000 salary working full time for Angels Corp. Angels Corp. reported $408,000 of taxable business income for the year (2020). Before considering his business income allocation from Angels and the self-employment tax deduction (if any), Mason's adjusted gross income is $182,000 (all salary from Angels Corp.). Answer the following questions for Mason. (Leave no answer blank. Enter zero if applicable.) b. What is Mason's net investment income tax liability (assume no investment expenses)?
Mason (single) is a 50 percent shareholder in Angels Corp. (an S Corporation). Mason receives a $182,000 salary working full time for Angels Corp. Angels Corp. reported $408,000 of taxable business income for the year (2020). Before considering his business income allocation from Angels and the self-employment tax deduction (if any), Mason's adjusted gross income is $182,000 (all salary from Angels Corp.). Answer the following questions for Mason. (Leave no answer blank. Enter zero if applicable.) b. What is Mason's net investment income tax liability (assume no investment expenses)?
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 48P
Related questions
Question
Transcribed Image Text:Mason (single) is a 50 percent shareholder in Angels Corp. (an S Corporation). Mason receives a $182,000
salary working full time for Angels Corp. Angels Corp. reported $408,000 of taxable business income for the
year (2020). Before considering his business income allocation from Angels and the self-employment tax
deduction (if any), Mason's adjusted gross income is $182,000 (all salary from Angels Corp.). Answer the
following questions for Mason. (Leave no answer blank. Enter zero if applicable.) b. What is Mason's net
investment income tax liability (assume no investment expenses)?
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