Becker CPA Review 2-1
Which of the following is considered a specified service trade or business (SSTB) for purposes of the qualifying business income deduction?
a.Accounting firm
b.Manufacturing company
c.Engineering firm
d.Architectural services
Ans Option a
Accounting firm is considered a specified service trade or business for the purposes of the qualifying business income deduction. Accounting firm consists of group of Professionals like certified public accountants, chartered accountants etc.
If any doubts or queries please comment and clarify I'll explain ASAP
Becker CPA Review 2-1 Which of the following is considered a specified service trade or business...
Becker CPA Review 2-3 Which of the following statements is true regarding taxpayers with taxable income below the taxable income limitations for the qualifying business income (QBI) deduction? a.QBI deduction is only allowed if a qualified trade or business (QTB). b.QBI deduction is a phased-out deduction if a specified service trade or business (SSTB). c.QBI deduction is limited to 50 percent of W–2 wages. d.A qualified trade or business (QTB) and specified trade or business (SSTB) are treated the same.
Becker CPA Review 2-7 Calculate the taxpayer's 2019 qualifying business income deduction for a qualified trade or business: Filing status: Single Taxable income: $180,000 Net capital gains: $0 Qualified business income (QBI): $80,000 W–2 wages: $20,000 a.$16,000 b.$10,000 c.$2,700 d.$13,684
Which of the following professionals is NOT considered engaged in a specified service trade or business (SSTB)? NFL player. Personal trainer. Paralegal. Tax return prepare
Becker CPA Review 2-2 What is the basic deduction calculation for the qualifying business income deduction? a.30% × Qualifying business income (QBI) b.20% × W–2 wages c.20% × Qualifying business income (QBI) d.30% × W–2 wages
Becker CPA Review 2-5 Which of the following is the overall limitation to the qualifying business income (QBI) deduction? a.Lesser of: 50 percent of combined QBI or 20 percent of the taxpayer’s taxable income in excess of net capital gain b.Lesser of: combined QBI or 20 percent of the taxpayer’s taxable income in excess of net capital gain c.Lesser of: 50 percent of W–2 wages or 25 percent of W–2 wages plus 2.5 percent of the unadjusted basis of qualified...
Which of the following is considered specified service trade or business? a. Athlete b. Architect c. C corporation employee d. Engineer
What is considered a specified service trade or business
Which one of the following is a specified service trade or business? A. architectural services B. Construction services C. Engineering services d. Financial services
Jake, a veterinarian, is engaged in a specified service trade or business. He is single, with taxable income of $195,000. As Jake's Tax Professional, you use the ten-step process to compute his qualified business income deduction. Your last step in the computation process is to figure his: Limitation based on Form W-2 wages paid by his business. Phase in limitation. Phaseout limitation. Limitation based on the unadjusted basis of qualified property held by his business.
Choose the response that best describes a taxpayer engaged in a specified service trade or business. Allister, a self-employed financial planner. Janelle, an employee who works part-time for a home healthcare service. Mason, a partner in a law firm. The firm is organized as a C corporation. Courtney, who owns shares of a manufacturing business organized as an S corporation.