topic Re: QBI Deduction in Get your taxes done using TurboTax

QBI Deduction

DMIDave — Wed, 31 Mar 2021 18:58:11 GMT

This year Turbo Tax is returning a zero QBI deduction vs the 20% deduction in 2019 married & Joint both years

Related facts 2019 2020

AGI 289K 246K

from Sub S KI

income 71K 25K

salaries 98K 102K

turbo tax caclulated

QBI decuct 14K zero

both years active participant and at risk

The turbotax "Qualified Business Income Component Worksheet" brings forward a -18 QBI and the 102K Wages .... any thoughts on how TT calculates the -18 QBI?

Re: QBI Deduction

JamesG1 — Wed, 31 Mar 2021 20:07:28 GMT

The Qualified Business Loss Carryforward can be viewed on the Qualified Business Income Deduction Summary, line 3.

It is deducted from the current year's total. So, if your have

QBI entity A $50,000

QBI entity B $10,000

Total $60,000

less carryfwd -18,000

$48,000

What makes it more complicated is that QBI A and QBI B can each be limited by the wage / UBIA computations.

The AGI that you are reporting may further limit the calculations.

The Qualified Business Income Deduction Summary is a good explanation of how the deduction is computed.

Re: QBI Deduction

DMIDave — Thu, 01 Apr 2021 14:31:58 GMT

James

Thanks for the response... Im not sure why but after deleting the K1 entry and reloading, turbo tax decided that the "preliminary" QBI deduction should be 5000 vs -18... I had reviewed the original entry several times and am not sure why it was not calculating the full 20%, but now I have the full deduct.... so Im now ready to file...

Thanks

DLC