Question
Carl owns a 20% interest in the DEQ Restaurant Group, LLC. Carl's share of LLC income in 2020 is $9,000. In advising Carl regarding the
Carl owns a 20% interest in the DEQ Restaurant Group, LLC. Carl's share of LLC income in 2020 is $9,000. In advising Carl regarding the tax treatment of this income allocation, which statement is correct?
Question 38 options:
| If the $9,000 is qualified business income, Carl can deduct up to 20% as a qualified business income deduction, for AGI. |
| If the $9,000 is qualified business income, Carl can deduct up to 20% as a qualified business income deduction, from AGI, but only if he itemizes his deductions. |
| If the $9,000 is qualified business income, Carl can deduct up to 20% as a qualified business income deduction, from AGI, but only if he also claims the standard deduction. |
| If the $9,000 is qualified business income, Carl can deduct up to 20% as a qualified business income deduction, from AGI, in addition to his itemized deductions or the standard deduction. |
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