How much FICA and/or self-employment tax is Huxley required to pay on her compensation and his share of the Triple H income if Triple H is formed as an LLC (taxed as a partnership)? CORRECT ANSWER IS 15,006 (show steps to show how)
How much FICA and/or self-employment tax is Huxley required to pay on her compensation and his share of the Triple H income if Triple H is formed as an LLC (taxed as a partnership)? CORRECT ANSWER IS 15,006 (show steps to show how)
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 32P
Related questions
Question
Hadley and Huxley each owns 50 percent of Triple H. During the year, Huxley received $86,400 compensation for services he performed for Triple H during the year. He performed a significant amount of work for the entity, and he was heavily involved in management decisions for the entity (he was not a passive investor in Triple H). After deducting Huxley's compensation, Triple H reported taxable income of $39,600.
How much FICA and/or self-employment tax is Huxley required to pay on her compensation and his share of the Triple H income if Triple H is formed as an LLC (taxed as a
CORRECT ANSWER IS 15,006 (show steps to show how)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you