Why did the TCJA of 2018 include a deduction for qualified business income?
A. To provide a tax cut to C corporations that qualified as a small business.
B. To provide C corporations with a deduction for pass-through income items.
C. To provide a tax cut for owners of pass-through entities.
D. To encourage C corporations to earn qualified business income for shareholders.
Why did the TCJA of 2018 include a deduction for qualified business income? A. To provide...
Under the TCJA, personal and dependency exemptions in 2018 are doubled remain the same are eliminated None of the above. Under the TCJA, miscellaneous itemized deductions, which in 2017 needed to exceed 2 percent of AGI to be deductible, in 2018 are doubled remain the same are eliminated None of the above. Under the TCJA, individual income tax rates in 2018 in general are increased remain the same are eliminated are decreased None of the above. Under the TCJA, the...
After changes included in the Tax Cuts and Job Act (TCJA); a. the choice of business entity playing field is unchanged b. C corporations status preferred c. C corporations are more attractive than before ,but pass-through entities will still be preferred in many cases d. pass-through entity status is never advisable c. C corporation
Allowing a qualified business income deduction for certain pass-through business income can be justified: A) As mitigating the effect of the annual accounting period concept. B) By strictly political considerations. C. By economic considerations. D. By social considerations.
Which of the following a true statement about the qualified business income deduction? A The deduction is available for qualified business income from a partnership, S corporation, or sole proprietorship. B The deduction an above-the-line deduction for adjusted gross income. C The deduction can never be claimed for income from a service business D The deduction for qualified business income from a partnership or S corporation is computed at the entity level
Form W-2 wages for the purpose of the qualified business income deduction include all of the following except: a. Wages subject to withholding b. Elective deferrals c. Guaranteed payments to partners for service d. Deferred compensation related to the trade or business
For real estate owners,which of the following is correct? a. The TCJA does not include any changes that would affect them, b. Section 1031 exchanges are not allowed after 12/31/17, c. The TCJA includes several beneficial changes and one negative change, d. The Section 179 deduction for qualified real property expenditures was repealed by the TCJA.
Which of the following does not affect the Qualified Business Income Deduction A) Self employed health insurance deduction B) Self employed contributions to qualified retirement plans under Section 404 C) 50% if self employed tax adjustment to income D) Unreimbursed employee business expenses
Which of the following statements is true regarding the deduction for qualified business income (QBI)? A. The deduction changes the calculation of self-employment tax. B. Taxable income is reduced below zero by the deduction. C. The deduction is not limited by income or service trade or business. D. A sole proprietor may be able to deduct up to 20% of QBI.
Qualified Business Income (QBI) Deduction (LO 4.10) Rob operates a small plumbing supplies business as a sole proprietor. In 2018, the plumbing business has gross business income of $421,000 and business expenses of $267,000, including wages paid of $58,000. The business sold some land that had been held for investment generating a long-term capital gain of $15,000. The business has $300,000 of qualified business property in 2018. Rob's wife, Marie, has wage income of $250,000. They jointly sold stocks in...
Deductions for AGI include deductions attributable to rents and royalties and the qualified business income deduction. Is it true or false.