This deduction applies to Schedule C filers (sole proprietorships and other self-employed businesses), LLCs, partnerships, S corporations, estates, and trusts. Certain rental enterprises may also qualify. Corporations are not eligible. If you do not have a business reported on your tax return, you probably have REIT dividends reported. Form 1099-DIV with dividends marked in box 5 qualify for the QBI deduction. K-1 entries also generate QBI deductions.
Eligible taxpayers may be entitled to a deduction of up to 20 percent of their combined qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. This component of the section 199A deduction is not limited by W-2 wages or the UBIA of qualified property.
Do I qualify for the qualified business income deduction?
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