In: Accounting
1.The Tax Cuts and Jobs Act of 2017 reduced the corporate income tax rate to a 21% flat rate.
True
False
2. The Tax Cuts and Jobs Act of 2017 eliminated the child tax credit.
True
False
3. A taxpayer can deduct pass-through losses on his Form 1040. However, he must pass all these limitations in order to deduct the losses, except the
A.basis limitation. |
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B.the limitation on the number of children he has. |
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C .at-risk limitation. |
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D.passive loss limitation. |
Q.1 Ans > True
The Tax Cut and Jobs Act (TCJA) 2017 reduced the top corporate income tax rate from 35 percent to 21 percent, bringing the US rate below the average for most other Organisation for Economic Co-operation and Development countries, and eliminated the graduated corporate rate schedule (table 1). TCJA also repealed the corporate alternative minimum tax.
Q.2 Ans > False
When the Tax Cuts and Jobs Act was signed into law on December 22, 2017, it upended the U.S. tax code in a lot of ways. The dust is still settling, and that can make it a little challenging to prepare your return for tax year 2018 in 2019. One big change affects the Child Tax Credit.
The credit wasn’t eliminated by the TCJA as several other tax perks were; it was actually improved upon somewhat. New rules apply from tax year 2018 through tax year 2025. They'll affect the tax return you’ll file in 2019 for the 2018 tax year.
Q.3 Ans > B. the limitation on the number of children he has.
A taxpayer can deduct pass-through losses on his Form 1040. However, he must pass all these limitations in order to deduct the losses, except the limitation on the number of children he has.