topic foriegn business income in Business & farm

foriegn business income

bacwilks — Tue, 31 Mar 2020 17:57:04 GMT

How do I enter my foreign business income so that it calculates as Business Income not Personal Income?

Re: foriegn business income

Carl — Tue, 31 Mar 2020 19:13:25 GMT

What kind of foreign business? It matters. Sole proprietorship? Single member LLC? Multi-member LLC? Partnership? S-Corp? C-Corp?

Re: foriegn business income

AmyC — Tue, 31 Mar 2020 19:22:34 GMT

If you are running a sole proprietor business in a foreign country, you can use the schedule C for business income and then claim a credit for the foreign tax paid on the business. You will not qualify for QBI. f I choose the foreign earned income exclusion as self-employed can I still claim the qualified business income deduction?

If you have another set up, please reply so we can help.

Re: foriegn business income

bacwilks — Wed, 01 Apr 2020 18:17:48 GMT

single member llc

Re: foriegn business income

KurtL1 — Wed, 01 Apr 2020 19:32:34 GMT

For a single member LLC, you should enter the Income and expenses on Schedule C.

When the business entity is a sole proprietorship, your business income is also your personal income. On your return the Schedule C income will qualify for the Qualified Business Income deduction. (QBI).