I am using PC version of TT Home & Business, which I have been using for over 10 years.
We have Qualified Business Income (QBI) and should be getting the new 20% pass through deduction for the Schedule C income.
I have entered all Schedule C income (my wife) as well as all wage income (me) and am not seeing the deduction happen anywhere. Total income is below any phase out.
As far as I understand it the amount should appear on Line 9 on the 1040, but that is currently showing 0.
Am I doing something wrong? Or does that deduction need to be entered manually?
I have seen no new questions in the step by step to suggest that TT is in a position to actually consider the deduction?
In order for the QBI deduction to appear, you have to make sure you’ve answered the business participation questions properly. It’s been calculating it properly for me.
In TT Business I cannot figure out how to complete a 1065 partnership K-1 and get the QBI without increasing the capital accounts and balancing schedules L and M-1 M-2 etc. (husband and wife LLC)
First: If I report bus income to Line 1 - Ordinary Business, then it accumulates automatically in the capital accounts. However, because it was paid out to the partners (husband and wife - two partners) the capital accounts should not accumulate income.
Second: I also want to distribute the income unevenly, even though the profit percentages are 50% for the two of us. In the past CPAs have done this with a statement explaining the distribution as "proportional share of aggregate". Is it O.K. to override the defaults and do that?