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New Member
posted Jun 1, 2019 12:15:51 PM

Why do I show a QBI deduction but have no business income? I am totally retired. No 1099-MISC.

My income consists of only SSA, 1099-R, IRA distributions, Div, Int, Cap Gains.  Can't understand why I have a QBI deduction.

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1 Best answer
New Member
Jun 1, 2019 12:15:52 PM

One possibility as to why the deduction is reflected on your return is 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.

 


3 Replies
New Member
Jun 1, 2019 12:15:52 PM

One possibility as to why the deduction is reflected on your return is 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.

 


New Member
Feb 15, 2020 7:04:17 AM

so what do I do leave it or remove it 

Expert Alumni
Feb 18, 2020 5:08:00 AM

Leave it on your return you may have the QBI deduction if you received dividends in box 5 of your tax document from your broker.

 

If you are invested in a REIT that also counts as income for the QBI Deduction.