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Renee's modified AGI of $5,000 does not exceed QPAI so QPAI is limited to modified AGI. What is the Qualified Production Activities Income (QPAI) for Renee?

1) 10000
2) 5000
3) 450
4) Cannot be determined

1 Answer

6 votes

Final answer:

Renee's Qualified Production Activities Income (QPAI) cannot be determined with the data provided. QPAI relates to U.S. domestic production income but the actual figures of Renee's production activities are not given, only that it is restricted by her modified AGI of $5,000.

Step-by-step explanation:

The Qualified Production Activities Income (QPAI) for Renee cannot be determined with the information provided. QPAI is a tax term referring to the income derived from domestic production activities in the United States, eligible for a deduction under Internal Revenue Code Section 199 to encourage U.S. manufacturing and production. While the question suggests that Renee's modified AGI (Adjusted Gross Income) does not exceed her QPAI, it does not give us the actual amount of her QPAI, only that it is limited to her modified AGI.

Thus, without additional details regarding Renee's domestic production revenues and expenses, it is not possible to definitively calculate her QPAI.

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