QBI Documents

[gnoga]

I am using TurboTax business for taxes for a trust.  The trust has two rental properties.  I mark that the income from each property qualifies as QBI.  The rental properties appear as property A and property B on the Schedule E.  TurboTax business uses only the information from Property A to create the QBI Deduction Information worksheet.

Is this right?  Shouldn't there be a worksheet for each property?

[PatriciaV]

Yes, there should be a Schedule E Worksheet for each property. You may need to review the QBI Deduction Info section on that worksheet to be sure 1) there are no form errors and 2) that one property is not assigned to a Real Estate Enterprise (RRE). The box for this appears under Line A of this section. Assigning an RRE would combine the activity into one property for QBI purposes.

[gnoga]

Thanks for your help.

Does it need to be a separate Schedule E for each or can you list them as property A, B, C on a single Schedule E?

[PatriciaV]

The Schedule E worksheets are separate for each rental property. But Schedule E reports all rental/royalty properties on page 1 (although you may have more than one "page 1" if you have more than three rental/royalty properties).

Likewise, each rental property has a separate QBI Component Worksheet. But the information for each property appears on Form 8995 as a separate row under Line 1.

[gnoga]

Thanks for the response

I looked at the regular TurboTax 2024 version, and there is a separate worksheet for the properties in Schedule E.  However, I am using the TurboTax Business 2024, and in it, the worksheet seems to be included in the Schedule E, Page 1 form.  I can't find a way to have a separate worksheet for each property.  In the TurboTax Business version, will I need to set up separate Schedule E forms for each property?   I am using TurboTax business because the properties are held within a Trust, and I need to file a return for the Trust.  Income is passed through using a K-1.    

Can Intuit look at enhancing the Business product to have separate worksheets by property?

[PatriciaV]

Yes, you can add as many rental properties as you need for a Form 1041 trust using TurboTax Business. Follow the input page from Federal Taxes >> Income >> Rental and Royalty Property >> Start/Update. Note the blue box for "Add another Schedule E form" under the list of properties that have been already entered.

Your entries under this topic will the appropriate entries on Schedule E for each property and a separate QBI Component worksheet. TurboTax Business does not create a Schedule E Worksheet in a trust return.

[gnoga]

Thanks.

How do I transfer the property and all of its asset worksheets to the new Schedule E document?

[PatriciaV]

As you enter the rental activities in TurboTax Business for a trust, the information is automatically included on Schedule E page 1, with a separate column for each activity. The depreciation for the assets (if any) will appear on Line 18.