Which of the following statements is/are correct?
I.There is a minimum allowable standard deduction from adjusted gross income of individuals.
II.Corporations are allowed deductions from adjusted gross income.
III.Corporations are allowed a standard deduction.
IV.Personal exemptions of individuals are deductible for adjusted gross income.

Question

Which of the following statements is/are correct?
I.There is a minimum allowable standard deduction from adjusted gross income of individuals.
II.Corporations are allowed deductions from adjusted gross income.
III.Corporations are allowed a standard deduction.
IV.Personal exemptions of individuals are deductible for adjusted gross income.
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Quizplus · Accepted Answer

Statement I is correct because there is indeed a minimum standard deduction that individuals can claim on their tax returns, which reduces their adjusted gross income. Corporations, on the other hand, do not get a standard deduction (making statement III incorrect) but can deduct business expenses from their gross income (making statement II incorrect in this context as it might imply a similarity to individual deductions which is not accurate). Personal exemptions were eliminated for individuals under the Tax Cuts and Jobs Act of 2017, making statement IV incorrect.

Which of the Following Statements Is/are Correct