Hello,
I have a question on K1 S corporation. I just opened my S Corp with my partner on November 2022, I think I did not materially participate in this S Corp because I did not participate more than 500 hours during the tax year. It will show passive income from schedule K-1 on schedule E page 2.
It is a tea business and this is not a specified service trade or business I guess.
Schedule K1 line 17 V show statement A-QBI pass through entity reporting 3 items: Ordinary business income,W2 wages, and UBIA of qualified property.
Is this K1 ordinary business income considered passive income and not qualify for QBI?
If I qualify for QBI, should Ordinary business income be qualified for qualified business income, QBI deduction?
Please help, thank you!
