An Individual in a Specified Service Business, Such as Accounting

question 63

Multiple Choice

An individual in a specified service business, such as accounting, with taxable income over the threshold amounts ($210,700, or $421,400 if married filing jointly in 2019) , will not lose the QBI deduction on such income if:

• A) Taxable income exceeds the thresholds due to income of a spouse.
• B) Taxable income did not exceed the thresholds in the prior three years.
• C) Taxable income exceeds the thresholds because of net capital gain income.
• D) None of these.

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Definitions:

Department Stores

Large retail establishments that offer a wide range of products across various categories under one roof.

Price Skimming

A pricing strategy where a firm charges a high initial price for a product, then gradually lowers the price over time.