QBI From Gain on Sale of Business Assets

[Kjl4]

I am working in TT Deluxe and have sold oil and gas properties related to Sch C and Sch E.  I believe the gain (ordinary income) qualifies for the QBI deduction but I can't find a place to tell TT that.  There is no asset disposition worksheet with the 199A qualifying section at the bottom.

[RobertB4444]

In order to qualify for the QBI deduction for the disposition of assets the assets have to be disposed of by a qualifying entity.  Your individual tax return and disposition of personal assets won't qualify for a QBI deduction.  You will need to enter the income onto the schedule C or E and not on the D which qualifies for long term capital gains on your personal return.

If you were to file an S-Corp return or a partnership return and have income from the disposition of assets it would qualify for the QBI deduction.

Here is the IRS FAQ about the QBI deduction.  A lot of helpful information there.

@Kjl4 

[Kjl4]

They are schedule C assets with income on Schedule C.  I can't find a way to get TT to recognize them.  They show up correctly on 4797.

[ThomasM125]

After you enter your business income and expenses, you should see a screen that asks you if the business income qualifies as QBI income. You just need to answer that it does. You will see a similar screen after you enter rental income and expenses.

[Kjl4]

Thank you.  The QBI box was checked but didn't pick up the sale of business assets.  However I did find  a screen that asked if I wanted to adjust the schedule C business income so I was able to add the ordinary income portion there.