What is Mason net investment income tax liability

Reference no: EM132633563

Question - Mason (single) is a 50 percent shareholder in Angels Corp. (an S Corporation). Mason receives a $180,000 salary working full time for Angels Corp. Angels Corp. reported $400,000 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 $180,000 (all salary from Angels Corp.). Answer the following questions for Mason.

Required -

a. Assuming the income allocated to Mason is qualified business income, what is Mason's deduction for qualified business income?

b. What is Mason's net investment income tax liability (assume no investment expenses)?

c. What is Mason's self-employment tax liability?

Reference no: EM132633563

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