don't get QBI deduction for rental income when I enter rental property is sold. QBI deduction is there if I dont show rental property is sold.

[jayantc]

Every thing I enter is correct for QBI Safe Harbor. HNR block online does give me QBI deductions, for same entries. Is this a bug or I may be entering something wrong?

[Mike9241]

do you have QBI loss carryovers on this property?  

The gain on sale of the property does not qualify for the QBI. ny current year QBI is reduced by QBI loss carryovers from prior years. There is also a phaseout if your income is too high. look at the 8995 Did you enter everything in H&R so it exctly matches what's in TurboTax. if not, that could well be the reason  

[jayantc]

Thanks for your response. Well I don’t have loss carry over. I am only looking for QBI deductions for rental income in 2025, not on capital gain on sale

[PatriciaV]

We have tested QBI for a sold rental property but are unable to reproduce the experience you have seen. It would be helpful to have a TurboTax ".tax2025" file that is experiencing this issue.

If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions: 

In TurboTax Online, open your return, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools.
2. A window will pop up which says Tools Center.
3. On this screen, select Share my file with Agent.
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
5. You may wish to snap a screenshot to post instead of the actual number.
6. Reply to this thread with your Token number (including the dash) and tag (@) the Expert requesting the token from you.
7. Please include any States that are part of your return - this is VERY important.

If you are using TurboTax for Desktop, go to Online in the top menu, then choose "Send Tax File to Agent."

We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

[jayantc]

@PatriciaV  Token 1349855

[PatriciaV]

Thank you for the token.  We'll review the entries and respond as soon as we have information to share.

[PatriciaV]

We have reviewed the diagnostic return that you provided, specifically the QBI calculated for the Rental Enterprise. Because you reported no wages or UBIA for QBI, and your taxable income was over the phase-out threshold, QBI was reduced to zero. You can review this calculation on the QBI Component Worksheet for Enterprise #1. Note the reduction ratio of 100% on Line 6. This means your QBI income isn't used for QBI calculations in the absence of wages or UBIA (Line 15).

Form 8995A reports $47 of QBI from REIT dividends, which appears on Form 1040 Line 13(a).

[jayantc]

I never got option to enter for UBIA for QBI

[ThomasM125]

The wages and unadjusted basis of qualified business property (UBIA) would be included in your rental entries. It is likely that you don't have any wages, since you are dealing with a rental. You may have UBIA, however, since you likely have rental assets, such as the building and furniture and equipment. That would limit your deduction to 2.5% of the undepreciated value of your rental assets. 

I suggest you look on the QBI component worksheet for Enterprise #1 as mentioned by @PatriciaV and see if you can enter UBIA for the rental property. It would be the cost of your assets less the depreciation taken on them. Also, you can only use an asset for UBIA purposes for ten years.