Certain Taxpayers Are Eligible for a Deduction for Qualified Business

question 88

Multiple Choice

Certain taxpayers are eligible for a deduction for Qualified Business Income (QBI) . Which of the following taxpayers are eligible for the QBI deduction?
I.A single taxpayer with taxable income of $100,000 who owns 100% of the stock of a regular corporation that manufactures rustic furniture.
II.A single taxpayer with taxable income of $250,000 who is a 50% partner in an accounting firm.
III.A single taxpayer with taxable income of $100,000 that operates an accounting business as a sole proprietorship.
IV.A single taxpayer with taxable income of $125,000 who owns 100% of the stock of an S Corporation that produces oak tables.
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• A)Only statement I is correct
• B)Only statement III is correct.
• C)Only statements III and IV are correct.
• D)Only statements II, III, and IV are correct.
• E)Statements I, II, III, and IV are correct.

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Definitions:

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A classification system that includes 1,300 common occupations in the United States which is used to generate a list of occupations and educational requirements based on the Holland three-letter code.

Career Counseling

A guidance process that helps individuals understand their own abilities, interests, and values to make career decisions.

Classification System

A method of organizing or categorizing objects or information based on shared qualities or characteristics.