WKH3
New Member

I am not a sole proprietor or partnership. Why am I getting a Qualified Business Income Deduction?

I am an employee with some capital gains. I don't have any rental property. 

DanielV01
Expert Alumni

Business & farm

Do you have a 1099-DIV with an amount in Box 5?
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WKH3
New Member

Business & farm

yes!
WKH3
New Member

Business & farm

Thanks for your help!
DanielV01
Expert Alumni

Business & farm

You're welcome
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DanielV01
Expert Alumni

Business & farm

That's where your 199a deduction is coming from.  Box 5 on form 1099-DIV reports REIT (Real Estate Investment Trust) distributions.  Although REITS are not considered to be QBI, they can qualify for the Section 199A deduction.

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