Question

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

Answer 1

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Answer is highlighted in yellow: Solution: Answer: c. C corporations are more attractive than before ,but pass-through entities will still be preferred in many cases. Explanation: was upto 35%. Even pass throught entities are still Because, current c-corp rate is flat 21%, earlier preferred if investors think that there taxable income will not be subject to 35% or more. Even pass through entities are getting QBl deduction from January 1, 2018.