Jilly is a limited partner in Partnership WXY, and she does not materially participate in the business. Choose the response that correctly completes the following sentence about her ability to claim the qualified business income deduction. Jilly is:

A) Eligible for the deduction, and the exact amount she is eligible to deduct is computed on the partnership's tax return and reported to her on Schedule K-1 (Form 1065).

B) Eligible for the deduction, but she must figure the exact amount she is eligible to deduct based on information the partnership provides on her Schedule K-1 (Form 1065) regarding her distributive share of the partnership's qualified business income, wages, and unadjusted basis.

C) Not eligible for the deduction because she is not a general partner.

D) Not eligible for the deduction because she does not materially participate in the business.

Answer rating: 100% (QA)

Option B Eligible for the deduction but she must figure ... View the full answer