HI,
I have a hobby of buying and selling on ebay. As the hobby grew, I had to declare it as a real business on eBay since the 1099-K was about $600. I did not see this on the 2022 Turbo Tax version and its questionnaires but on 2023 Turbo Tax Home and Business ask if my online business is a QBI. I answered YES since its in the USA and I make/produce the products which I carry an inventory in my home. On the Review process, its is asking this which I don't fully have an understanding
Provide a description of the trade and an explanation of the factors met that allow the aggregation in accordance with Regulations section 1.199A-4.
Not sure what answer they are looking for?
Has this trade or business aggregation changed from the prior year?
No. The business has not changed.
Business Name is my name, John
QBI 9999
UBIA 500
Next line is was automatically added Enterprise #1 and its UBIA is 333,000.
Not sure how that was added.
Last line is the Qualified business income component amount.
Thanks in advance for the help.
An individual may be engaged in more than one trade or business. The qualified business income deduction rules under section 199A presume that each trade or business is a separate trade or business. However, an individual may make a decision to aggregate the various trades or businesses into one trade or business only for the purpose of the qualified business income deduction.
The question is asking whether you want to aggregate multiple trades or businesses into one trade or business for purposes of the qualified business income deduction section 199A. You may not have multiple trades or businesses. You are not required to do this.
See also this IRS FAQ question 28.
QBI 9999 is qualified business income of $9,999, I presume.
UBIA 500 or UBIA 333 is unadjusted basis immediately after acquisition (UBIA) refers to the basis of the assets within the trade or business. See the IRS FAQ question 1.