DavidS127
Expert Alumni

Get your taxes done using TurboTax

I'm posting instructions for how to aggregate or "un-aggregate" your QBI businesses for 2019. 

 

You'll need to decide whether or not you want or need to aggregate any businesses in 2019.  Once you aggregate, you must continue to aggregate in future years.  But, not aggregating last year does not preclude you from aggregating this year.    Refer to the IRS instructions for Form 8995-A for more information on aggregation.

 

If you want or need to aggregate any businesses, as of this morning 3/3/2020 the return is print and mail only in TurboTax.  If I can confirm a date that TurboTax will enable e-file for aggregated QBI businesses, I will update this post.

 

If you do not need or want to aggregate any businesses, here is how to “un-aggregate” them in TurboTax Online or TurboTax Download/CD:

  1. 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.
  2. Find the QBI Component form for the aggregated businesses.  Delete that QBI Component sheet.
  3. Now, go to Review and start the review routine.
  4. 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 “primary” form for that business (Schedule C, Schedule E, K-1). It will be highlighted for Question A in the Qualified Business Income Deduction Smart Worksheet.
  5. 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).
  6. Continue until you have created a separate QBI component worksheet for each business that you do not want to aggregate.

Note that you could also use these instructions to aggregate businesses.  Delete the QBI component worksheets for each business you want to aggregate, go to the Review, and link all the businesses to the same QBI component worksheet.


If you are using TurboTax Download/CD version, you can also make the switch in Forms mode.  Save a back-up copy (Save As) of your tax return and then try this approach:

 

In Forms mode, find the schedule for each business/source of QBI (e.g., Schedule E), and then find the Qualified Business Income Deduction Smart Worksheet for that form (e.g., for Schedule E it is after Line 22 Deductible rental real estate loss).  Question A in that smart worksheet asks which QBI worksheet to report (double-click in box A).  Choosing the same QBI worksheet for all businesses is how TurboTax aggregates them for QBI calculations; conversely if you use a separate QBI worksheet for each business/source of QBI they do not aggregate for the calculation.  The QBI worksheet is named the "QBI component worksheet". 

 

So, you can delete the QBI component worksheets that are not like you want, and repopulate new QBI component worksheets in the Qualified Business Income Deduction Smart Worksheet for each QBI business or rental.

[Edited 03/03/2020|7:05am PST]

@grahaila

 

 

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