The Qualified Business Income (QBI) deduction reduces the tax rate applied to partnerships to 21%.

Which of the following is a requirement for a corporation to elect S corporation status for federal tax purposes?

Olivia, a self-employed artist, teaches painting classes in her home’s sunroom. She does not use the room for any other activities, and she does not have another location fixed location for her work. Is Olivia eligible for the home office deduction?

In 20×4, Monica, a freelance consultant, received a $12,000 payment from a client for a project. The client later disputed the quality of her work and, in early 20×5, Monica was required to refund $5,000. Which of the following best describes how Monica should treat the $12,000 for tax purposes in 20×4?

True or False: Property received in a divorce settlement is excluded from gross income and is not taxable to the recipient.

Expenses related to an individual’s trade or business activities are typically deductible as itemized deductions on Schedule A.

Jia earns $138,000 as an engineer for a health device company. What is Jia’s employee portion of FICA (Social Security and Medicare) for the year? Hint: The Social Security wage base limit for 2026 is $184,500.

Ella inherits a mountain cabin with FMV of $480,000 from her friend Jill, upon her death. Jill purchased the cabin three years ago for $280,000. Ella sells the cabin for $450,000 one year after inheriting it. What is Ella’s realized gain or loss on the sale of the cabin?

Personal expenses like clothes, rent, and car payments are only deductible if the taxpayer’s business is organized as an LLC.

Which of the following scenarios constitutes a realization event for federal income tax purposes?