Matilda is a limited partner in Partnership JKL, and she does not materially participate in the business. Choose the response that correctly completes the last sentence about her ability to claim the qualified business income deduction. If she is eligible for the deduction, select the response that describes how the amount of her deduction is computed. If she is not eligible, select the response that correctly explains the reason why she cannot claim the deduction Matilda is: 1) Eligible for the deduction, and the exact amount she is eligible to deduct is computed on the partnership's tax return and reported to her on Schedule K-1 (Form 1065). 2) Eligible for the deduction, but she must figure the exact amount she is eligible to deduct based on information the partnership provides on her Schedule K-1 (Form 1065). 3) Not eligible for the deduction because she is not a general partner. 4) Not eligible for the deduction because she does not materially participate in the busines
Matilda is a limited partner in Partnership JKL, and she does not materially participate in the business. Choose the response that correctly completes the last sentence about her ability to claim the qualified business income deduction. If she is eligible for the deduction, select the response that describes how the amount of her deduction is computed. If she is not eligible, select the response that correctly explains the reason why she cannot claim the deduction Matilda is: 1) Eligible for the deduction, and the exact amount she is eligible to deduct is computed on the partnership's tax return and reported to her on Schedule K-1 (Form 1065). 2) Eligible for the deduction, but she must figure the exact amount she is eligible to deduct based on information the partnership provides on her Schedule K-1 (Form 1065). 3) Not eligible for the deduction because she is not a general partner. 4) Not eligible for the deduction because she does not materially participate in the busines
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Matilda is a limited partner in Partnership JKL, and she does not materially participate in the business. Choose the response that correctly completes the last sentence about her ability to claim the qualified business income deduction. If she is eligible for the deduction, select the response that describes how the amount of her deduction is computed. If she is not eligible, select the response that correctly explains the reason why she cannot claim the deduction
Matilda is:
1) Eligible for the deduction, and the exact amount she is eligible to deduct is computed on the partnership's tax return and reported to her on Schedule K-1 (Form 1065).
2) Eligible for the deduction, but she must figure the exact amount she is eligible to deduct based on information the partnership provides on her Schedule K-1 (Form 1065).
3) Not eligible for the deduction because she is not a general partner.
4) Not eligible for the deduction because she does not materially participate in the busines
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