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 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Towards A Strategic Human Resource Management Roles Of HR Audit And Org Culture
Authors: Adel Al Samman
1st Edition
3330653051, 978-3330653054
