I looked at your token file and see you have the rental property marked as not an SSTB, but your Schedule C is marked as an SSTB. You can change this on the Schedule C. You can go back through the interview or you can change it in Forms mode if you are using the desktop. On the Schedule C, scroll down to the Qualified Business Income Deduction Smart Worksheet and mark NO on D1 and D2. That gets your business to qualify for QBI.
Second thing: Since your taxable income is over $241,950 (and SSTBs don't qualify), the deduction is either A or B, whichever is less:
- A = 50% of the business's W-2 wages paid (or 25% of the W-2 wages paid plus 2.5% of the business's unadjusted basis in all qualified property(UBIA)), whichever one is the greater amount
- B = 20% of QBI
See calculation in this TurboTax FAQ. Your rental has a loss and no W-2 wages and the business has no W-2 wages or UBIA, so in the calculation above, A is going to be $0, so your QBI deduction is $0 (the lesser of A or B) for both activities. You can choose to aggregate the 2 activities, if you qualify to, to get a QBI deduction of $2585. By combining them, you can use UBIA of the rental.
Should I Aggregate? Review this article and make sure you want to do this. If you aggregate this year, you must continue to aggregate in all future years.
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