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May I get some feedback ? What is Qualified Business Income? How to determine taxpayer deductions for qualified business income The tax code is supposed
May I get some feedback ?
- What is Qualified Business Income? How to determine taxpayer deductions for qualified business income
The tax code is supposed to encourage and support small businesses. As discussed in our textbook, section 1-1c "Social Considerations", two examples are given:
- shareholders of small business corporations can take an ordinary deduction rather than a capital loss for stock investment losses
- small business corporations shareholders may make a special election that allows for profits or losses of the corporation to flow through to its shareholders. This would avoid the corporate income tax.
In addition, businesses also have the ability to depreciate qualifying property in the year of purchase rather than over time using the 179 deduction and tax credits for various things such as work opportunity tax credits, tax credits for rehab expenditures, and so on.
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