TurboTax doesn't show QBI for second sole proprietorship

[user-1253]

I have 2 sole proprietorships.  One shows income as QBI in TurboTax Premier Mac.  The other is for work as a landscaper (code 561730) that has all its income on one 1099-NEC.  TurboTax shows QBI = 0 for that business.  Landscaping is not generally considered a “specified service trade or business” (SSTB) so I don't understand why QBI=0 on the worksheet.

[ThomasM125]

You have to designate the income from the business as qualifying for QBI treatment, it is not automatic. You will need to edit the landscaping business entries and after you review the income and expenses, you will see the option to designate the income as qualifying for QBI treatment. Also, you can use the help icon on the top right of your screen to enter "QBI" and you will see a "jump to" option that will take you to the QBI entry screen.

[user-1253]

I did check the "Yes landscaping is qualified business income." box and it is still not listed as having QBI on the QBI Income Deduction Summary.

[ThomasM125]

It may be that the net income for the landscaping business is $0. That can happen if you add an asset and choose the section 179 depreciation option. In that case, just enough of the section 179 depreciation would be taken until the income of the business was reduced to $0, assuming the section 179 deduction was more than that.

[user-1253]

net income is not zero. there is no depreciation either.  it's all very simple, some income on the 1099-NEC and a tiny amount of supply expenses. cash basis.

[PatriciaV]

Have you reviewed Form 8995 to see how the QBI deduction was calculated? This form may provide an explanation.

Also, at the end of the QBI section of the interview for your business, TurboTax presents the result of the QBI calculations with an explanation of how the amount was determined. You may wish to revisit this topic for more information.

[user-1253]

I checked form 8995 and Line 1 lists both businesses but has QBI=0 for this one. 

turbotax shows the QBI calculations with an explanation of how the amount was determined at the end of the ionterview for the one business but not the one it decided has 0 QBI.  I've revisited many times and even tried changing the business code to Misc (999000 or something.)  I get the interview about SSTB but I say it is not one of those and not deriving income from one of those.  The only real difference seems to be that the problem business income came on a 1099-NEC.

I don't think it matters but there's actually a third business with a very small amount of earnings that was paid with a w2.  that also shows 0 QBI, but I expect that because of the w2.  all businesses use my name as the business name and are cash basis.

[PatriciaV · Accepted solution]

Have you reviewed the QBI Smart Worksheet on Schedule C for the business with QBI=0? This worksheet appears after Part V and provides details on how the deduction is calculated, which appears on Line H. If you have net income for this business, some adjustment must be zeroing out the income for QBI.

@user-1253

[user-1253]

ok the schedule C QBI Deduction smart worksheet line 5a Total self employment deductions connected to this business matches the net profit.  This is where I lose the QBI.

Somewhere I said to use the business at issue for the Healthcare Marketplace policy.  This seems to be what line 5a is refering to.   Form 7206 Self-Employed Health Insurance Deduction has the net profit for that business on line 4, but line 1, total amount paid, is empty.  Marketplace premiums didn't get inserted on line 1. so line 14, my deduction is 0.

I have a 1095-A that has premiums for. the four months of coverage under the marketplace (before that I was covered under my spouse's employer's policy) and those premiums are all less than the SLCSP

So should there be a value on f7206 line 1 for the premiums and some actual deduction for my marketplace premiums there - or -  should change something else so I get the QBI?  I tried switching which business I associate to this policy and the other choices, including one that had no income this year, all give slightly smaller refunds even though the QBI increased.

Is there somewhere else I should look to see if I got a deduction for the premiums?

Thanks