topic Re: 20% Pass Through in Get your taxes done using TurboTax

20% Pass Through

Jeff9 — Sun, 10 Mar 2019 20:54:22 GMT

I am using PC version of TT Home & Business, which I have been using for over 10 years.

We have Qualified Business Income (QBI) and should be getting the new 20% pass through deduction for the Schedule C income.

I have entered all Schedule C income (my wife) as well as all wage income (me) and am not seeing the deduction happen anywhere. Total income is below any phase out.

As far as I understand it the amount should appear on Line 9 on the 1040, but that is currently showing 0.

Am I doing something wrong? Or does that deduction need to be entered manually?

I have seen no new questions in the step by step to suggest that TT is in a position to actually consider the deduction?

Re: 20% Pass Through

Country Apple — Sun, 07 Apr 2019 16:45:49 GMT

In order for the QBI deduction to appear, you have to make sure you’ve answered the business participation questions properly. It’s been calculating it properly for me.

20% Pass Through Deduction on QBI and K-1

HydroSci — Mon, 16 Sep 2019 01:07:37 GMT

In TT Business I cannot figure out how to complete a 1065 partnership K-1 and get the QBI without increasing the capital accounts and balancing schedules L and M-1 M-2 etc. (husband and wife LLC)

First: If I report bus income to Line 1 - Ordinary Business, then it accumulates automatically in the capital accounts. However, because it was paid out to the partners (husband and wife - two partners) the capital accounts should not accumulate income.

Second: I also want to distribute the income unevenly, even though the profit percentages are 50% for the two of us. In the past CPAs have done this with a statement explaining the distribution as "proportional share of aggregate". Is it O.K. to override the defaults and do that?