P2-U06 · PART 2 · SOURCE CYCLE 2026-2027
Other Business Deductions and Credits
How to complete this unit
This unit uses 22 source-gated recall cards and 20 admissible practice questions. Complete the sequence in order; the unreleased wiki prose remains outside the learner path.
- 1 · LearnBuild the rule
Answer each recall prompt before opening it. Then learn the exact rule, test the controlling facts through four quick challenges, explore common questions, and finish with one own-words teach-back.
- 2 · ApplyUse it in context
Complete at least 20 mapped questions over two sessions. Review the explanation even when the answer is correct.
- 3 · ProveTest readiness
Use the Part 2 mock under time pressure. Return here for every flagged or missed concept before the next attempt.
Verified recall questions
Only cards whose complete question and answer were checked against exact primary-authority evidence appear here. Stable unit ownership gathers this lesson across 1 textbook collection.
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?
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)?
20 years
Q8.Which of the following activities can qualify a taxpayer as a real estate professional?
Property management
Q9.How are excess business losses treated in the following year?
They are carried forward and treated as a net operating loss.
Q10.Satsuki owns a small retail shop as a sole proprietorship. The shop has a net business loss of $7,000 in 2025. The business has always had profits in prior years. She has no other income for the year. How should the net operating loss be treated for tax purposes?
No carryback, carryforward indefinitely.
Q11.The Work Opportunity Tax Credit provides a credit for businesses that:
Hire unemployed veterans and other individuals from targeted groups.
Q12.Which of the following business activities does NOT qualify for the 199A Qualified Business Deduction?
Rental activity that is not a §162 trade or business.
Q13.The Disabled Access Credit conforms to the applicable standards of the:
Americans with Disabilities Act.
Q14.Which of the following is NOT considered a "Specified Service Trade or Business" for the purposes of calculating the 199A Qualified Business Income Deduction?
Architect.
Q15.Which of the following businesses are permitted to carryback their net operating losses?
Farming business
Q16.Which of the following is not part of the Investment Credit in 2025?
Credit for Small Employer Pension Plan Startup Costs.
Q17.Suncoast Management, Inc. is a C Corporation that qualified for several business credits in 2025. After applying the credits, its taxable income was reduced to zero, so the business could not use all of its business credits in the current tax year. What is the carryover period for the GBC?
The GBC may be carried back one year and carried forward for 20 years.
Q18.Aroma Candles, Inc. is a candle-making company. In 2025, Aroma Candles renovated their retail shop to comply with the Americans with Disabilities Act, adding a wheelchair ramp to their main entrance. Aroma Candles had gross receipts of $750,000 and spent $15,000 on disabled access upgrades during the year. What is Aroma Candles' current-year Disabled Access Credit?
$5,000
Q19.The 199A QBI deduction applies to which of the following types of income?
Domestic business income
Q20.Which of the following business types cannot generate qualified business income for the purposes of the 199A QBI deduction?
C Corporation
Q21.Which of the following credits is a valuable credit for businesses such as restaurants, barber shops, hair salons, spas, and other service establishments?
Credit for Employer Social Security and Medicare Taxes on Employee Tips
Q22.Which form is used to figure the excess business loss that is reported on a taxpayer's return?
Form 461
Ready to move on?
- ▸ Explain at least 80% of these 22 rules without opening the answer, twice on different days.
- ▸ Score 80% across 20 or more mapped questions over two sessions, not one memorized round.
- ▸ Complete a timed Part 2 mock and return to this unit if its concepts remain flagged or missed.
Use these checks to choose your next study action. They do not predict a PSI scaled score.