QBI deduction

[knazifi]

Why is it that if my capital gains for the year is greater than earned income, then QBI deduction becomes zero?

[knazifi]

To be more specific, the net capital gains is greater than taxable income, results in zero QBI deduction???

[Rick19744]

What is your taxable income less your capital gain? In reading again, you answered this question.  See the additional commentary.

There are two components to this deduction.

The deduction is limited to the lesser of the QBI component plus the REIT/PTP component or 20 percent of the taxable income minus net capital gain.

You fall into the second component and as a result, no QBI.

[knazifi]

Not sure if I follow the explanation provided.

I am trying to get clarification on QBI deduction as done using TurboTax. In my case, as shown in my "QBI deduction summary" form, I have a small amount of combined QBI (including 20% of REIT/PTP income), but  total 199A (QBI) deduction is zero, since "taxable income" is lower than "net capital gains." Not sure if this is correct, and if yes, why taxable income has to be greater than net capital gains to be able to claim the QBI deduction?