QBI when one property has a loss but has been sold

qofmiwok — Tue, 10 Mar 2026 05:53:21 GMT

I believe that you are not supposed to include income in QBI if you no longer own the property at the end of the tax year.

But what if that property created an operating loss in its last year?

I have checked the boxes to say it is not a QBI property, but my QBI income is still being based on factoring in that loss.

Should I make an adjustment to my QBI income, adding the amount of that loss back in (ie changing QBI income to the total of the other properties without that loss?)

Or is it correct to leave it as is?

Also nothing is showing up on my statement Z explanation. Is there some worksheet I haven't done yet? Or is walking through the step by step the way to make that happen? (I saw that on another post but it was from a several year about TurboTax.)

Thanks

Re: QBI when one property has a loss but has been sold

Mike9241 — Tue, 09 Aug 2022 17:16:16 GMT

not that I'm aware of. even in the final year you must take the QBI loss into account in determining your QBI deduction for the year. an activity that generated QBI in prior years doesn't lose that characteristic because it is disposed of. so Turbotax is doing it correctly and you should check that it is QBI property.

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QBI when one property has a loss but has been sold

Re: QBI when one property has a loss but has been sold