Which of the following taxpayers is potentially eligible for a qualified business income deduction based on the noted activity? circle all that apply)
A) A shareholder of General Electric.
B) A sole proprietor operating a restaurant.
C) A self-employed doctor.
D) Jennifer, owner of a winery operated as an S corporation.
E) The Red Cross a charitable organization).

Question

Quizplus · Accepted Answer

B) A sole proprietor operating a restaurant, C) A self-employed doctor, and D) Jennifer, owner of a winery operated as an S corporation, are potentially eligible for a qualified business income deduction. This deduction is designed for individuals, including sole proprietors, and owners of pass-through entities like S corporations, who earn income from a qualified trade or business. A) A shareholder of General Electric, a C corporation, would not be eligible as the deduction does not apply to investors in C corporations. E) The Red Cross, being a charitable organization, does not qualify as it does not operate for profit, which is a requirement for the qualified business income deduction.

Which of the Following Taxpayers Is Potentially Eligible for a Qualified