A Service-Type S Corporation Shareholder Cannot Claim the 20% QBI

question 96

True/False

A service-type S corporation shareholder cannot claim the 20% QBI deduction.

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Definitions:

Solvency

A financial metric indicating whether a company can meet its long-term financial obligations, focusing on its ability to continue operations over the long term.

Return On Common Equity

Return on Common Equity (ROCE) measures the return a company generates on the common equity held by its shareholders, indicating how effectively equity is used to generate profits.

Net Income

A company's overall earnings minus all expenditures and tax obligations.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid before any dividends are paid to common stockholders. Preferred stock typically does not have voting rights.