Which of the Following Taxpayers Is Potentially Eligible for a Qualified

question 19

Short Answer

Which of the following taxpayers is potentially eligible for a qualified business income deduction based on the noted activity? (circle all that apply)
a. A shareholder of General Electric.
b. A sole proprietor operating a restaurant.
c. A self-employed doctor.
d. Jennifer, owner of a winery operated as an S corporation.
e. The Red Cross (a charitable organization).

---

Definitions:

Financial Reporting

The method by which declarations are created to reveal the financial condition of an organization to its managers, investors, and governmental bodies.

External Auditor

An independent third-party professional who examines the financial statements of a company to provide an opinion on their accuracy and compliance with accounting standards.

Cost-Plus Contracts

Agreements where a contractor is paid for all construction-related expenses plus a contracted profit.

Profit Markup

The amount added to the cost price of goods to cover overhead and profit; a measure of the profit margin.