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

Answer rating: 100% (QA)

Answer A Lower Noncorporate owners of certain pass through operating business View the full answer