You can find the detail in the source form - where is your QBID generated from? Schedule C, E, F, K-1, etc? Do you have a Form 4562 listing assets in your return?
The basis of qualifying property is calculated as the unadjusted basis immediately after acquisition of that property.
Qualifying property means:
- tangible property,
- depreciable property
- property that is available for use in the business at the close of the tax year
- property used in the production of QBI at any time during the year
- property for which the depreciable period has not ended before the close of the tax year
This is where the limitation calculations come into play. If a taxpayer has taxable income above the higher taxable income threshold and owns a business that is not a specified service trade or business, the QBI deductible amount for the business is subject to a limitation based on W-2 wages and/or capital.
‘Capital’ is measured as the unadjusted basis of certain business assets.
The deductible QBI amount for the business is equal to the lesser of:
- 20% of the business's QBI, or
- The greater of: (a) 50% of the W-2 wages for the business, or (b) 25% of the W-2 wages plus 2.5% of the business's unadjusted basis in all qualified property.
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