Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer the following questions regarding the qualified business income deduction under 199A. a. What is the purpose of the qualified business income deduction under

Answer the following questions regarding the qualified business income deduction under § 199A.

a. What is the purpose of the qualified business income deduction under § 199A?

The qualified business income (QBI) deduction under § 199A is designed to yield a ----------- effective tax rate on QBI to ---------- . The deduction ------------ require a corresponding cash payment.

b. How is the deduction calculated?

The partner's deduction is the --------- of the QBI amounts from each trade or business. The deduction, in general, is limited to -------------- of the partner's taxable income ------------ capital gains.

c. What information does the partnership report?

A partnership must report information the partner needs to calculate the deduction limitation, including -------- wages and the unadjusted basis ------------ .

PLEASE FILL IN THE BLANKS.

Drop down choices:

A. )

1. lower or higher

2. partnerships and c corporations, all taxpayers, noncorporate owners of certain pass-through operating businesses

3. does or does not

B)

1. sum or net

2. 10%, 15%, 20%, 25%

3. including or excluding

C)

1.w-2, m-1, or m-3

2. of the partners' property contributions during the year, of the partner's capital account at year-end, of the partnership's depreciable property

Step by Step Solution

3.37 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

Answer A Lower Noncorporate owners of certain passthrough operating business ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

South Western Federal Taxation 2020 Corporations, Partnerships, Estates And Trusts

Authors: William A. Raabe, James C. Young, William H. Hoffman, Annette Nellen, David M. Maloney

43rd Edition

357109163, 9780357109748, 978-0357109168

More Books

Students also viewed these Business Communication questions

Question

What is the purpose of the general business tax credit?

Answered: 1 week ago

Question

Cfg company has the following employees. Wdwardo paid 1 2 , 0 0 0

Answered: 1 week ago