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Angeli
Returning Member

How to include Form 4797 Part II income to QBI form 8995?

I have elected mark-to-market election under section 475(f),  thus i report capital gains on form 4797 part II and all expenses on schedule C.

 

On Form 8995, turbotax only listed my schedule C loss, but not the form 4797 income.

Should I just manually add it to the form 8995?

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1 Reply

How to include Form 4797 Part II income to QBI form 8995?

you do realize that income reported in part II of 4797 is taxed as ordinary income and not capital gains. (capital gains don't qualify for QBI)    are you using the disposition worksheet for non-depreciable assets available through schedule C? that should carry the gain to 4797 part II and to the QBI computation (the worksheet may show it as STCG but in reality it doesn't go to schedule D.  if not,  on schedule C there is a QBI section you can list the 4797 income in the section for ordinary gain adjustment. do not override 8995 otherwise you won't be able to e-file. 

 

 

 

maybe someone will have another idea but I have found no way to link the 4797 to schedule C.

 

I'm using this source to agree with you that the 4797 income from trading in part II is QBI

https://lawprofessors.typepad.com/agriculturallaw/2018/01/the-qualified-business-income-qbi-deductio... 

 

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