Identify which of the following statements is true.
A)For expenses incurred after December 31, 2017, no deduction is allowed for any activities involving entertainment, amusement, or recreation, including expenses related to a facility used in connection with these activities.
B)The Dividends Received Deduction for individuals is limited to 50%.
C)Domestic Production Activities Deduction carry overs that originated from pre 2018 tax years are limited to 50% of taxable income until 2025.
D)Deductibility of business interest in a given year is limited to 80% of adjusted taxable income.

Question

Quizplus · Accepted Answer

The Tax Cuts and Jobs Act of 2017 eliminated the deduction for entertainment, amusement, or recreation expenses. Therefore, option A is true. The Dividends Received Deduction for individuals is actually limited to 20%, so option B is incorrect. The Domestic Production Activities Deduction has been completely eliminated, so option C is incorrect. Deductibility of business interest is limited to 30% of adjusted taxable income, not 80%, so option D is incorrect.

Identify Which of the Following Statements Is True