Describe the limitations on the qualified business income deduction that apply to high income taxpayers.
What will be an ideal response?
Thebasic applicationof§199A becomes considerablymorecomplexonce a taxpayerreaches certaintaxableincome thresholds. These taxable income thresholds– determinedwithoutregard to the QBI deduction – are$321,400 for married taxpayers filing jointly and $160,700 for all other taxpayers in 2019. These amounts will beindexed for inflationannually. Once these thresholdsarereached,§199Aimposestwoindependentlimitations:
| 1. | First, § 199A imposesa cap on theQBI deduction that is determined byreference to a percentage of theW-2wages paidbythebusiness (i.e., wages paid to its employees) orbyreferences to a smallerpercentageofW-2wagespaidanda percentage of thecost of its depreciable propertyusedto produceQBI. |
| 2. | Second, the QBIdeductiongenerallyisnotavailablefor incomeearnedfrom certain specified service businesses. |
You might also like to view...
A deficit trade balance hinders the Federal Reserve's ability to lower interest rates when combatting a recession.
Answer the following statement true (T) or false (F)
The Plutonium Company has a bond investment classified as held-to-maturity, which has a carrying value of $62,000 and a fair value of $24,000. The decline in value is considered as other than temporary. What entry should Plutonium make to record the decline in value?
A. Unrealized Loss on Value Decline 38,000Allowance for Change in FairValue of Investment 38,000 B. Investment in Held-to-Maturity Securities 38,000Realized Loss on Decline in Value 38,000 C. Realized Loss on Decline in Value 38,000Investment in Held-to-Maturity Securities 38,000 D. Unrealized Loss on Value Decline 38,000Investment in Held-to-Maturity Securities 38,000
An organization introduces active employee wellness programs. Which of the following is likely to happen in the organization as a result?
A. Introduction of a center for physical fitness for employees to use anytime B. More focus on physical exercise than on awareness issues C. More health education programs designed to inform employees on health-related topics D. Increased focus on awareness and opportunity as well as support and reinforcement E. Fewer counselors who handle one-on-one outreach programs
Multidimensional data analysis techniques include advanced computational functions
a. True b. False Indicate whether the statement is true or false