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P2-U06 · PART 2 · SOURCE CYCLE 2026-2027
Other Business Deductions and Credits
Only cards whose complete question and answer were checked against exact primary-authority evidence appear here.
Q1.Alder has an unused general business credit. What is the general carry period?
Back 1 year and forward 20 years
Q2.How long may the remaining NOL described for Alder generally be carried forward?
Indefinitely until used up
Q3.What event underlies a business bad-debt loss?
A business-connected debt becomes partly or totally worthless
Q4.What is the general QBI classification of a specified service trade or business before a taxable-income exception is considered?
It is generally excluded from qualified-trade-or-business status
Q5.Where does Form 3800 direct a taxpayer to report a current-year business credit?
On the applicable lines and columns of Part III
Q6.The Village Kitchen is a restaurant business with ten servers, who are all tipped employees. Which of the following credits would the Village Kitchen be eligible for, with regard to Social Security and Medicare taxes paid on employee’s tips? A. Credit for Tax Withholding and Estimated Tax. B. Work Opportunity Credit. C. Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips. D. Credit for Excess Social Security and RRTA Tax Withhel
Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips.
Q7.How long can a business carry forward its unused General Business Credit (GBC)? A. Indefinitely, as long as the business is still in operations. B. 10 years C. 20 years D. 5 years
20 years