If this is an investment and not a Service, Trade, or Business that you engage in, the Royalty Income from an oil refinery does not qualify for QBI.
Income eligible for QBI does not include items such as:
- Items that are not properly includable in taxable income
- Investment items such as capital gains or losses
- Interest income not properly allocable to a trade or business
- Wage income
- Income that is not effectively connected with the conduct of business within the United States
- Commodities transactions or foreign currency gains or losses
- Certain dividends and payments in lieu of dividends
- Income, loss, or deductions from notional principal contracts
- Annuities, unless received in connection with the trade or business
- Amounts received as reasonable compensation from an S corporation
- Amounts received as guaranteed payments from a partnership
- Payments received by a partner for services other than in a capacity as a partner
- Qualified REIT dividends
- PTP income
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