20% REIT Dividend Deduction (QBI): wrong TT calculation - is it a TT error?

[drennman]

I want to take advantage of the deduction for 20% of REIT Dividends (Qualified Business Income as reported on 1099-DIV). I am well under the income limits for this deduction.   

However in 2018, TT gave me a $0 QBI deduction.  TT entered my "Income Before QBI Deduction" from 1040, line 10 - that is correct. Then it entered a larger amount for the "Net Capital Gains" for the next line of the QBI Deduction Summary Form.  The worksheet that calculates the deduction is not obvious and if you weren't looking for it you wouldn't see it.      

There is no click-through on that line and so I can't see where TT is pulling it from and it's MUCH larger than my actual Net Capital Gains.   It seems to me that Net Capital Gains should be the same as Schedule D, line 22. 

So this seems like a TT error.  Anyone check their 2018 to see what happened?

Where does TT pull Net Capital Gains from in order to calculate the QBI?  Why it is so much larger than my actual Net Capital Gains (Schedule D/Schedule 1, line 13)?

Can anyone shed light on what TT did in 2018 so I can look for it i for 2019 taxes?    Thanks!

[JulieS]

The amount of for Net Capital Gains on the 2018 QBI Deduction Summary, is your net capital gains from Schedule D, line 16 plus your total qualified dividends. 

I wouldn't spend too much time worrying about that, because there are actual tax forms to calculate your QBI this year.

For someone with REIT dividends, your QBI will be calculated on Form 8995-A, which is not approved for e-file yet. The IRS has not finalized their instructions for the new form yet, so it will be at least several days, maybe longer before the form is final.

[drennman]

JulieS

Thank you!  Thank you for the thorough answer.  

I will wait for the updated 2019 form that will calculate the REIT QBI.

[AlexanderS08]

TurboTax anticipates that the form will be available on February 20, 2020. Thank you for your patience.

[drennman]

Thanks for the update!