- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
No, there is no rule that says you can only aggregate in the year of purchase. Once an aggregation election has been made, it must be followed consistently in all subsequent tax years unless a significant change in facts and circumstances causes the prior aggregation to no longer qualify under the criteria above. Presumably, the disposition of a trade or business would be considered a significant change in facts and circumstances, since it would guarantee violation of the second criterion above, that common ownership exists for the majority of the tax year, including the final day of the tax year (Regs. Sec. 1.199A-4(b)(1)(ii)). The final regulations also provide that when the prior aggregation no longer qualifies due to a significant change in facts and circumstances, the individual or RPE is required to reapply the aggregation rules and determine a new permissible aggregation, if any. Individuals and RPEs are allowed to add newly created or newly acquired trades or businesses to an existing aggregation group, assuming all applicable criteria are met.
From - The Tax Adviser - 199A and Aggregation - detailed discussion of QBI aggregation with trades, businesses, or RPEs (rental property enterprises)
TurboTax FAQ on this topic
**Mark the post that answers your question by clicking on "Mark as Best Answer"