Qualified business income (QBI) deduction under Section 199A allows:

A C corporations to deduct

B Up to 20% deduction for pass-through business income for eligible taxpayers

C Unlimited deductions

D Only partnerships to deduct

✓ Correct Answer: Option B

§199A: eligible sole proprietors, partners, and S corp shareholders can deduct up to 20% of qualified business income.

💡 Why is B) the correct answer?

The correct answer to the question "Qualified business income (QBI) deduction under Section 199A allows:" is Option B: Up to 20% deduction for pass-through business income for eligible taxpayers.

The other options — A) C corporations to deduct, C) Unlimited deductions, D) Only partnerships to deduct — are incorrect for this CPA Exam Prep question. As explained above: §199A: eligible sole proprietors, partners, and S corp shareholders can deduct up to 20% of qualified business income.

📚 About This CPA Exam Prep Practice Question

This 2-level CPA Exam Prep question from the Regulation (REG) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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Qualified business income (QBI) deduction under Section 199A allows:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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