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QBI Component worksheet?
i'm stuck at the QBI component work sheet. My husband business and my business are showing up and looks like i need to enter explanation statement.
What am i supposed to enter?
We havea rental property as well, but for the rental property the work sheet came up saparately.
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QBI Component worksheet?
It sounds like you and your husband's businesses are being "aggregated" on the same QBI Component worksheet, i.e., treated as a single business for qualified business income (QBI) deduction purposes. If so, you will see both your Schedule C businesses listed under Business Name in the table just below where an explanation is being requested.
If you do want to aggregate these Schedule C businesses, enter a brief description of the business enterprise, and explain why it meets the IRS aggregation rules at this link:
-
You or a group of persons directly or indirectly own 50% or more of each trade or business for a majority of the tax year, including the last day of the tax year, and all trades or businesses use the same tax year end;
-
None of the trades or businesses are an SSTB; and
-
The trades or businesses meet at least two of the following factors:
- They provide products, property, or services that are the same or that are customarily offered together.
- They share facilities or share significant centralized business elements such as personnel, accounting, legal, manufacturing, purchasing, human resources, or information technology resources.
- They are operated in coordination with, or reliance upon, one or more of the businesses in the aggregated group.
If you do not want to aggregate these Schedule C businesses, here is how to “un-aggregate” them in TurboTax Online:
- Go to Delete a Form: In the left menu, select the dropdown arrow next to Tax Tools and then under that select Tools; in the pop-up window Tool Center, choose Delete a form.
- Find the QBI Component form for the aggregated businesses. Delete that QBI Component sheet.
- Now, go to Review and start the review routine.
- You will have an error for each business that no longer has a QBI Component form. For each of those businesses, you will see the Schedule C form for that business. It will be highlighted for Question A in the Qualified Business Income Deduction Smart Worksheet.
- Double click in the highlighted Question A box, and you will get a pop-up asking you to link to a QBI component worksheet. Create a new copy for that business (e.g., give it the name of that business).
- Continue until you have created a separate QBI component worksheet for each Schedule C you do not want to aggregate.
- If in TurboTax Online you do not get the highlighted Question A box, go back through the interview questions for each Schedule C and TurboTax will create a new QBI Component worksheet for that business.
If you are using a Download/CD version of TurboTax, you can use Forms mode to delete the QBI Component worksheet, and then find that Question A box in the Qualified Business Income Deduction Smart Worksheet below line 48 on the Schedule C form. Use the QuickZoom button or double-click the box to link your Schedule C to its "own" QBI Component worksheet.
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QBI Component worksheet?
It sounds like you and your husband's businesses are being "aggregated" on the same QBI Component worksheet, i.e., treated as a single business for qualified business income (QBI) deduction purposes. If so, you will see both your Schedule C businesses listed under Business Name in the table just below where an explanation is being requested.
If you do want to aggregate these Schedule C businesses, enter a brief description of the business enterprise, and explain why it meets the IRS aggregation rules at this link:
-
You or a group of persons directly or indirectly own 50% or more of each trade or business for a majority of the tax year, including the last day of the tax year, and all trades or businesses use the same tax year end;
-
None of the trades or businesses are an SSTB; and
-
The trades or businesses meet at least two of the following factors:
- They provide products, property, or services that are the same or that are customarily offered together.
- They share facilities or share significant centralized business elements such as personnel, accounting, legal, manufacturing, purchasing, human resources, or information technology resources.
- They are operated in coordination with, or reliance upon, one or more of the businesses in the aggregated group.
If you do not want to aggregate these Schedule C businesses, here is how to “un-aggregate” them in TurboTax Online:
- Go to Delete a Form: In the left menu, select the dropdown arrow next to Tax Tools and then under that select Tools; in the pop-up window Tool Center, choose Delete a form.
- Find the QBI Component form for the aggregated businesses. Delete that QBI Component sheet.
- Now, go to Review and start the review routine.
- You will have an error for each business that no longer has a QBI Component form. For each of those businesses, you will see the Schedule C form for that business. It will be highlighted for Question A in the Qualified Business Income Deduction Smart Worksheet.
- Double click in the highlighted Question A box, and you will get a pop-up asking you to link to a QBI component worksheet. Create a new copy for that business (e.g., give it the name of that business).
- Continue until you have created a separate QBI component worksheet for each Schedule C you do not want to aggregate.
- If in TurboTax Online you do not get the highlighted Question A box, go back through the interview questions for each Schedule C and TurboTax will create a new QBI Component worksheet for that business.
If you are using a Download/CD version of TurboTax, you can use Forms mode to delete the QBI Component worksheet, and then find that Question A box in the Qualified Business Income Deduction Smart Worksheet below line 48 on the Schedule C form. Use the QuickZoom button or double-click the box to link your Schedule C to its "own" QBI Component worksheet.
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QBI Component worksheet?
Do you think a bookkeeping business consider as SSTB?
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QBI Component worksheet?
Accounting is clearly a profession that would be considered a specified service trade or business (SSTB). Bookkeeping is a component of accounting services, so one would think it would be considered as SSTB. However, the IRS has specifically labelled it as such.
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QBI Component worksheet?
I am not trying to combine these two functions how did I get here
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QBI Component worksheet?
I just deleted the worksheet that gave me the error. Although they did repopulate. Then on the aggregation questions I put; no change-turbotax errors
This resolved the issue and I was able to e-file
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