I sold my rental property held by a multi-member LLC. I had 9K of rental income and 200K of capital gains. Previously, I received a QBI deduction on the rental income, but no deduction this year. I understand the QBI deduction is not applicable to the capital gain portion of the income. I assume the capital gain affects the QBI deduction, but I cannot find any information on how or why.
Thanks,
-Andrew
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review form 8995 or 8995A which is where the QBI deduction is calculated. It is possible that with the capital gain you income went over the limit for the QBI deduction.
Thanks. That was it. My net capital gains exceeded my taxable income before the QBI deduction (Form 8995, lines 11 to 13).
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