The goal of the QBI deduction is to lower the effective tax rate on business profit earned by pass through entities.

Question

Quizplus · Accepted Answer

The QBI deduction was introduced to provide a tax break to pass through entities such as partnerships, LLCs, sole proprietorships, and S corporations, by allowing them to deduct up to 20% of their qualified business income. This effectively lowers their effective tax rate on their business profits. Therefore, the statement is true.

The Goal of the QBI Deduction Is to Lower the Effective