How do I get to the section of Qualified Business Income deduction?

[H4T3m4t2]

Why am I getting the QBI deduction for my rental property?  I thought I checked the "no" box for this section.  I can't seem to find this section to go back and review what was entered.

[PatriciaV]

You can review your answers for QBI at the of the Rental Property interview. Go back to the Rental Property Summary page and click Done with Rental Property at the bottom. Then follow the prompts to the page "Let's see if you're eligible for the QBI safe harbor" to update your answers.

[H4T3m4t2]

Thank you for your reply.  It just keeps taking me back to the same page.  I can select other portions of the rental property, but not the QBI portion, for some reason.  I've tried going into every category, but no luck.  Please help.

Another question regarding QBI that have conflicting answers when I read up on it.  I've read that a rental that is passive participant can't be included in the QBI, and that safe harbor requires 250 hours of time, which we don't perform.  But one of the questions when I was first able to get into the QBI category, asks if you rent it out for a profit, and I said yes (which makes you automatically get the QBI deduction).   Aren't all rentals rented out for a profit?  Does a rental that turned into a LLC, still passive participant, doesn't fulfill the safe harbor 250 hours--can we still claim the QBI because it's a LLC?  

[AliciaP1]

Can you clarify which version of TurboTax you are using (online or Desktop)?  The steps differ slightly and I would like to get you going in the right direction.

@H4T3m4t2

[H4T3m4t2]

Hi, thanks for your quick response.  I'm using TurboTax Premiere, online, for Mac.

[PatriciaV]

To review your entries in TurboTax Online, go to Wages & Income >> Rental Properties and Royalties

1. Edit the rental property you need to work on.
2. On the property info summary page, scroll down to the bottom and click Edit beside Qualified Business Income.
3. This is the start of the QBI interview. In most cases, you would answer No to the Safe Harbor Election. This will not affect the QBI deduction, it's mainly for real estate professionals.
4. Rental activity is eligible for QBI, so answer yes to the next question.
5. Follow the prompts back to the summary page.

[H4T3m4t2]

Thank you for your reply.  Just to re-confirm, I can take the QBI on a passive rental if the rental is an LLC, sole-proprietor?

[ZoltanB45]

No, there is a lot more that determines whether a rental property qualifies for the QBI deduction. There three avenues for a rental real estate activity to be considered a trade or business eligible for QBI: (1) the rental activity qualifies as a Sec. 162 trade or business; (2) rent to specific related parties; or (3) it satisfies the requirements of a proposed safe harbor.

The factor that determine whether your business qualifies through the Sec 162 are

   1) The type of property rented (commercial versus residential);

  2) The number of properties rented;

  3) The owner's (or the owner's agents') day-to-day involvement;

[claybird99]

Hello,

I am in the process of completing my 2022 return with multiple rental properties. On each of the properties after entering income and expenses, I have hit "done" and then been taken to the QBI section.  My  deduction has been calculated, just as you described. 

However, I am attempting to complete one additional property and when I hit the "done" button it does not take me to the QBI section, it returns me to the "Wages and Income" page. I have tried repeatedly and swear I am doing it exactly the same as the others, but with no luck.

Any suggestions? (turbotax live online version)

[AliciaP1]

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@claybird99 

[claybird99]

Hello @AliciaP1 

Thank you for your reply.

My token number is 1090679.

The property in question is nicknamed "Border".

In summary, each of my rental properties has the QBI at the bottom of the summary page below the "less common situations" section, except for this one property. Upon completing my income and expenses I was not given the opportunity to enter the QBI section for this property.

Clay

[PatriciaV]

You mention using TurboTax Live. Have you tried contacting your Live agent? They should be able to help you troubleshoot your return - you paid extra for this service. See this article: How do I connect with a Tax Expert in TurboTax Live?

@claybird99