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gramgramgerald
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Retired couple. Income is INT, IRA, DIV, SS, RRB. No self employ. Why am I getting a Qualified Business Income deduction?

 
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JulieCo
New Member

Retired couple. Income is INT, IRA, DIV, SS, RRB. No self employ. Why am I getting a Qualified Business Income deduction?

One possibility is per the definition below from Congress of what is included in the Qualified Business Income deduction calculation, if you received a 1099 DIV with an amount in Box 5, the dividends from a REIT can be included in the calculation. 

Per the IRS recently released Notice 2019-07, the following is a definition of the income included in the QBI deduction calculation: 

Congress enacted section 199A (the Qualified Business Income Deduction) to provide a deduction to non-corporate taxpayers of up to 20 percent of the taxpayer’s qualified business income from each of the taxpayer’s qualified trades or businesses, including those operated through a partnership, S corporation, or sole proprietorship, as well as a deduction of up to 20 percent of aggregate real estate investment trust (REIT) dividends and qualified publicly traded partnership income.


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JulieCo
New Member

Retired couple. Income is INT, IRA, DIV, SS, RRB. No self employ. Why am I getting a Qualified Business Income deduction?

One possibility is per the definition below from Congress of what is included in the Qualified Business Income deduction calculation, if you received a 1099 DIV with an amount in Box 5, the dividends from a REIT can be included in the calculation. 

Per the IRS recently released Notice 2019-07, the following is a definition of the income included in the QBI deduction calculation: 

Congress enacted section 199A (the Qualified Business Income Deduction) to provide a deduction to non-corporate taxpayers of up to 20 percent of the taxpayer’s qualified business income from each of the taxpayer’s qualified trades or businesses, including those operated through a partnership, S corporation, or sole proprietorship, as well as a deduction of up to 20 percent of aggregate real estate investment trust (REIT) dividends and qualified publicly traded partnership income.


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