💰 CPA Exam Prep

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.

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