topic Re: section 199a deduction in Business & farm

section 199a deduction

john_weaver — Wed, 29 Jan 2020 22:21:29 GMT

cooperative sent me a letter detailing the amount of a section 199a deduction. where do I report it?

Re: section 199a deduction

RobertG — Thu, 30 Jan 2020 20:26:45 GMT

The 199A deduction is not separately reported, it is calculated by TurboTax based on your reported business income.

If you are reporting income from a Schedule C or F, TurboTax will add that income to the calculation. 199A income from partnerships is reported on the K-1.

Cooperatives do not qualify for the QBI deduction under section 199A(a) but may be eligible to take the section 199A(g) deduction. Section 199A(g) provides a deduction for Specified Agricultural or Horticultural Cooperatives (Specified Cooperatives) and their patrons similar to the deduction under former section 199, which was known as the domestic production activities deduction.

See IRS website 199A - Qualified Business Income Deduction FAQs for further information.

Re: section 199a deduction

Doctor_Don — Tue, 18 Feb 2020 15:39:31 GMT

Where do I enter Section 199A(g) amount on TurboTax?

Re: section 199a deduction

ColeenD3 — Tue, 18 Feb 2020 17:07:20 GMT

There is no place for you to manually enter it. The program enters it, based on the calculations regarding the entries you made.

Re: section 199a deduction

lbs1 — Thu, 21 May 2020 17:22:27 GMT

I own 7 condos that I purchased for investment. I saw a video on "20 percent tax deduction and rental income" which stated that I could claim this deduction if I managed the properties myself if I did it for 250 hours a year. When I look at turbo tax under rentals it asks for 750 hours. Where can I find the form to bundle the 7 condos and the work I do to get the safe harbor 199A decuction?

I do the following

advertise to rent the property

negotiate and execute the lease

verify information contained in prospective tenants application

collect rent and do the bookkeeping

keep track of hours spent on daily operation, maintenance and repair of property

manage repair of the property

manage real estate on a log for my hours

According to the video that should qualify me under a qualified business or trade.

I do not have a business, I simply am an investor who manages her own properties.

Please help me find the place in turbo tax to file the 199a

Re: section 199a deduction

DawnC — Thu, 21 May 2020 17:57:14 GMT

TurboTax will automatically apply the Qualified Business Income Deduction if your rental activities qualify you to take the deduction. Your rental activities should qualify for the deduction based on the amount of your net rental income. Can I get the QBI deduction on rental income?

Enter all of your rental properties in TurboTax. You can answer NO to the real estate professional and material participation questions. When you go through the property profile screens, you will be asked about Active Participation which is either owning 10% of the property or you made major management decisions. Answer yes to active participation.

After you are done entering the property profile, rental income and rental expenses, click on Done with Rental Property. Three screens later, TurboTax will ask - is this QBI (assuming you have net income and not a net rental loss). Answer Yes. Do this for each qualifying property and once you are done, your can view your Schedule E worksheet and Form 1040 to see the QBI deduction applied.

@lbs1