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USA 20. Which of the following is true with respect to W-2 wages with respect to

ID: 2533206 • Letter: U

Question

USA

20. Which of the following is true with respect to W-2 wages with respect to the qualified business deduction? Since it is a business related income it counts in determining the amount of the deduction available to the taxpayer who received the W-2 wages. It is a factor in the limitation formula It has no relevance in the computation of the deduction If instead of receiving W-2 wages, a partner received a guaranteed payment, it would count in determining the partner's deduction None of the above. a. b. c. d. e.

Explanation / Answer

Option d If instead of receiving W2 wages a partner received a guaranteed payment, it would count in determining the partner deduction As a salary expense the guaranteed payment received is treated as an expense for the entity ans passes through as the deduction to the owners/partners