I accidentally let my income be classified as QBI. It is definitely not QBI. How can I remove the QBI classification?
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To remove QBI classification from your tax return you need to delete the Form 8995 . Please see the steps below to do it in TurboTax:
getting rid of form 8995 will not help if you have items designated as QBI. the form will just reappear. what you may need to do first is eliminate items that generate the QBI if the tax law allows. for example, dividends on line 5 on 1099-div marked 199A would have to be eliminated. rental activity mat or may not be QBI. as a real estate professional they would be QBI and because QBI losses must be carried forward to future years to offset QBI income, they can not be eliminated. however, if you were to have just one or two rental properties it would likely be in your description. but if you take the position those rental activities are not a trade or business in 2020, if would be difficult to argue they are in the future unless the number of rental properties were to increase. you can't say schedule C or k-1's with QBI info are not a trade or business because the very definition of QBI involves a business. having said that if you have net QBI income from schedule C and/or K-1's. the IRS does not require you to take the deduction.
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