Question 87

Kim owns and operates a website security firm in Los Angeles, and her business currently files taxes as a C-Corporation. She recently became aware that the latest TCJA law is the largest piece of tax reform legislation enacted in over three decades. This new tax law would affect her business in dramatic ways; generally, for eight years beginning January 1, 2018 through December 31, 2025.Which of the following is seen as the most important benefit/advantage for Kim in the 2020 and 2021 tax years? a) Her firm will be paying a corporate tax rate of 21%. b) The corporation can offer employees a pension plan. c) The corporation has substantial medical expense deductions. d) The corporation can distribute dividends to its shareholders.

Question 89

A new Section of the IRC provides that a noncorporate taxpayer, including individuals, S-Corporations, Partnerships, Trusts or Estates, who has Qualified Business Income (QBI) may deduct 20% of their income with certain requirements. The TCJA added this new deduction starting on December 31, 2017 through: a) December 31, 2019 b) December 31, 2022 c) December 31, 2024 d) December 31, 2025