Oregon Qualified Business Income (QBI) Deduction

[Anonymous]

We have $65k of property management income through an LLC owned by my husband. After all expenses, depreciation, SE taxes, retirement contributions, etc, the QBI income that qualifies for the 20% deduction on the Federal tax return is $9k. In Oregon, QBI income qualifies for a reduce rated. Turbo Tax is asking me to input the amount of QBI income in Oregon. Do I input the same as the Federal amount ($9k) or is this calculation different?

Thanks,

Katie

[Anonymous]

I think I have answered my own question. The business does not have a qualifying employee so we do not qualify for QBI in Oregon. 

[DianeC958]

There is are requirements that have to be met to qualify for the reduced rate for QBI in Oregon.

You must have materially participated in the business.

You must have non-passive income from the business

Employee requirement. The sole proprietorship, partnership, or S corporation must have employed at least one employee who wasn’t an owner, member, or limited partner for an aggregate of at least 1,200 hours during the tax year in Oregon. Only the hours worked in a week in which an employee worked at least 30 hours in Oregon can be counted. Hours worked by an employee that is a spouse or other family member that isn’t an owner, member, or limited partner can be used to meet the hour requirements. Independent contractors can’t be used to meet the employee requirement.

If you do not meet this requirements you do not qualify for the reduced rate for QBI in Oregon.

Qualifying Business Income reduced rate for full year Oregon Residents is based on profit from the business that does not include any passive income.

Schedule OR-PTE-FY Instructions Qualifying business income reduced tax rate for Oregon full-year res...

@Anonymous 

[Paul2020]

I am an owner of a S-corp. Do you know if all NAICS Codes are eligible for the reduced tax rate? I assume I can only claim the income off of my Form 1120S?

Where do I get my sec 179 amount from?

[CatinaT1]

There isn't a reduced tax rate for an S-Corp.  Are you referring to the Qualified Business Income deduction?  Your K1 will provide all the information needed.

[Paul2020]

Yes, the QBI (I have attached a copy of the form)

I receive a W-2 as well as a K-1 both from the same S-corp.

Any guidance would be much appreciated.

https://www.oregon.gov/dor/forms/FormsPubs/schedule-or-pte-fy_101-365-1_2019.pdf

[DavidS127]

First, enter your S Corp K-1 into TurboTax.  For the Section 199A information associated with box 17 code V, enter the code V when you enter the K-1 box 17 screen, but you don't need to enter an amount.  Continue on, and you'll find the "We need some more information about your 199A income or loss" screen.  This screen must be completed with the numbers from your Section 199A Statement or STMT.   When you check the box next to a category on that screen, a place will open up to enter the amounts from the Statement or STMT that came with your K-1.  The applicable category (or categories) on this screen (and the following "Let's check for some uncommon adjustments" screen, if applicable) must be completed in order for your K-1 QBI information to be correctly input into TurboTax for the federal tax return.

Then, when you complete the Oregon tax return, look for a screen or question related to the Oregon Qualified Business Income.