Beginning in 2021, Which of the Following Taxpayers Is Subject

question 20

Multiple Choice

Beginning in 2021, which of the following taxpayers is subject to the excess business loss limitation?

• A) Delta Corporation, which incurred a $(2 million) business loss this year.
• B) Kenny, who is married filing a joint return and incurred a $(675,000) business loss this year.
• C) Linda, a single individual, who is a 50 percent partner in QT Partnership. This year, QT incurred a business loss of $(300,000).
• D) LetGo Partnership, which incurred a $(730,000) business loss this year.

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Definitions:

Kelley's Covariation

A theory proposed by Harold Kelley that suggests an individual determines the cause of an event by considering whether the observed behavior covaries or changes across time, place, or actors.

Attribution Theory

A psychological theory focused on how individuals interpret and understand their own and others' behaviors and actions by attributing them to internal or external causes.

Permanence

The state or quality of lasting or remaining unchanged indefinitely.

Attribution Theory

A psychological theory that examines how individuals infer the causes of their own and others' behaviors and events.