Question 1

Unless Congress makes a change, the QBI deduction is set to expire after 2025.

Accepted Answer

A) True 
 B)False

Question 2

Qualified business income includes the reasonable compensation paid to the taxpayer by a qualified trade or business and guaranteed payments made to a partner for services rendered.

Accepted Answer

A) True 
 B)False

Question 3

Ashley a single taxpayer) is the owner of ABC, LLC. The LLC a sole proprietorship) reports QBI of $900,000 and is not a specified services business. ABC paid total W-2 wages of $300,000, and the total unadjusted basis of property held by ABC is $30,000. Ashley's taxable income before the QBI deduction is $740,000 this is also her modified taxable income). What is Ashley's QBI deduction for 2019?

Accepted Answer

As Ashley's taxable income before the QB...

Question 4

What is a limited liability company? What favorable nontax and tax attributes does the LLC entity form offer taxpayers?

Accepted Answer

Similar to the corporate entity form, a ...

Question 5

Which of the following taxpayers is potentially eligible for a qualified business income deduction based on the noted activity? circle all that apply)

Accepted Answer

A)   A shareholder of General Electric.
B)   A sole proprietor operating a restaurant.
C)   A self-employed doctor.
D)   Jennifer, owner of a winery operated as an S corporation.
E)   The Red Cross a charitable organization) .F) A) and B)
G) B) and E)

Exam 2: The Deduction for Qualified Business Income for Pass-Through Entities

Correct Answer
verified
As Ashley's taxable income before the QB...
View Answer

Unless Congress makes a change, the QBI deduction is set to expire after 2025.

Correct Answer
verified

Which of the following taxpayers is potentially eligible for a qualified business income deduction based on the noted activity? circle all that apply)

Correct Answer
verified

Qualified business income includes the reasonable compensation paid to the taxpayer by a qualified trade or business and guaranteed payments made to a partner for services rendered.

Correct Answer
verified

What is a limited liability company? What favorable nontax and tax attributes does the LLC entity form offer taxpayers?

Correct Answer
verified
Similar to the corporate entity form, a ...
View Answer

Exam 2: The Deduction for Qualified Business Income for Pass-Through Entities

Correct AnswerverifiedAs Ashley's taxable income before the QB...View AnswerShow Answer

Unless Congress makes a change, the QBI deduction is set to expire after 2025.

Correct AnswerverifiedShow Answer

Which of the following taxpayers is potentially eligible for a qualified business income deduction based on the noted activity? circle all that apply)

Correct AnswerverifiedShow Answer

Qualified business income includes the reasonable compensation paid to the taxpayer by a qualified trade or business and guaranteed payments made to a partner for services rendered.

Correct AnswerverifiedShow Answer

What is a limited liability company? What favorable nontax and tax attributes does the LLC entity form offer taxpayers?

Correct AnswerverifiedSimilar to the corporate entity form, a ...View AnswerShow Answer

Correct Answer
verified
As Ashley's taxable income before the QB...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Similar to the corporate entity form, a ...
View Answer