QBI and Section 179 Carryover for Teaching/Tutoring/Instruction

KT500 · ‎January 21, 2022

I have an educational business that derives income from consulting (teaching/tutoring/Instruction category). I put yes into Turbotax Business. The screen shows the amount of ordinary business income/loss and asks if I need to make an adjustment. It also shows the unadjusted basis immediately after acquisition (UBIA) - whatever that means. How do I know if I need to make any adjustments? The next screen shows the Section 179 carryover and wants me to enter something in line A under Section 179 Regular Tax. My Section 179 from my 2020 Form 4562 shows $2,472 which I already put in the prior section about 179 carryover under depreciation. (Yes, I used Turbotax last year as well so it imported info from last year's return). I have no idea what to do in this part of the form. Where do I find info to put on these two forms? I don't want to report more income than I need to but I have no idea what to put on these two forms. Your site says that Turbotax will calculate this for me. If that is the case, then why is the program asking me to fill in these two forms? VERY FRUSTRATING for a very simple company otherwise.

PatriciaV · ‎January 23, 2022

If you have no adjustments to your Qualified Business Income or Section 179 Carryovers, you may leave these boxes blank. Since you used TurboTax last year, the program should have entered any info that would carry over to your current return.

The two screenshots below are for your reference.
Screenshot #1 is the Qualified Business Income adjustment page, which is rarely used by small businesses.

Screenshot #2 is for Section 179 Carryover, which may have no entries unless you had carryovers from a tax year before you began to use TurboTax for your business tax return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

KT500 · ‎January 23, 2022

Thank you. That was helpful. Last year, it also came up but I didn't know what to do here so I ignored it and just went on. I was worried that I should be putting something here and that I might have missed out on a deduction I was entitled to. I have used Turbotax for my business for several years now so if the program didn't put anything here, I guess I don't have to worry about it. An explanation from the company to that effect would be helpful.