Raj Is a 50% Shareholder in an S Corporation

question 92

Multiple Choice

Raj is a 50% shareholder in an S corporation.In the current year,he is reporting $50,000 of salary,$2,000 of interest income,$20,000 of qualified business income from the S corporation and $10,000 of long-term capital gain.Raj's taxable income before the qualified business income deduction is $65,000.Raj will be allowed a QBI deduction of

• A)$20,000.
• B)$4,000.
• C)$11,000.
• D)$13,000.

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Definitions:

Carefully Processed

Pertaining to information or data that has been meticulously examined or considered with attention to detail and accuracy.

Distinctive

Having a unique quality or characteristic that sets someone or something apart from others.

Conversion Theory

A theory in social psychology that suggests minority group members can influence the majority through consistency, self-confidence, and defection from the majority.

Minority Opinions

Views or beliefs held by a small segment of a population, often differing significantly from those of the majority.