topic QBI On Retired Person Return in Deductions & credits

QBI On Retired Person Return

saabram — Sun, 14 Mar 2021 17:41:05 GMT

Working on TT for a retired individual and I noticed the form for Qualified Business Income Deduction (form 8995) was entered. This person does not have a business and lives completely off retirement savings. What to do?

Thank you,

Re: QBI On Retired Person Return

ColeenD3 — Sun, 14 Mar 2021 17:56:29 GMT

It probably came from a 1099-DIV for a REIT.

Under the Tax Cuts and Jobs Act of 2017, though, REITs have been afforded a new tax preference: the IRC Section 199A deduction for “pass-through” businesses, that allows for a 20% deduction of any qualified REIT dividends against that very income, resulting in an effective 20% reduction in the tax rate on REITs (where the top 37% tax rate becomes “just” 29.6% instead).

REIT

Re: QBI On Retired Person Return

saabram — Wed, 17 Mar 2021 16:23:24 GMT

Thanks for the help. This did help me resolve.