You may need to go back and amend your Form 1065 return if you didn't complete the QBI questions. Otherwise, the partners won't be able to claim this deduction.
Here are the criteria for a "qualified business" for QBI:
1) The activity must be a "trade or business." Unfortunately, there is no specific test of what qualifies as a trade or business. The basic definition established by the courts is that an activity must be carried on with the primary intent of making a profit, as well as with regularity and continuity. (More on this later.)
2) The activity must be US-based. If your business sells products or provides services in the United States, the profits (or losses) from this business are generally US-based. Goods sold abroad and services provided abroad will generally also count as US-based if they are delivered from a US base of operations to a country where the business has no base of operations.
3) The income must not be "wages." For purpose of this test, wages generally include all payments you receive as an official employee of a business (i.e. wages reported on a W-2). However, there are two special cases. If you're a statutory employee (indicated by the "statutory employee" box on line 13 of your W-2 being checked), then the income from the statutory W-2 is not considered wages for QBI purposes. Also, in some cases payments you receive from a former employer may be treated as wages even if that employer no longer considers you an employee. If this business includes payments received from a company that employed you in the last three years, then those payments might be considered wages by the IRS.
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