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Returning Member
posted Apr 25, 2022 10:23:44 AM

How a trader who made 475f selection get QBI deduction and schedule C done in TurboTax desktop?

Dear,

 

A trader who made 475f selection put gain/loss in 4797 form according to below

  • Gains or losses treated as ordinary gains or losses, if you are a trader in securities or commodities and made a mark-to-market election under Internal Revenue Code section 475(f).

It seems that TurboTax does not pick up gain from form 4797, so you cannot input office expense, so on in schedule C,

Also you cannot get QBI deduction. So could someone share ideas how to do schedule C and get QBI deduction in this case in TurboTax desktop? Thanks a lot for kind help.

 

Lucy

0 1 793
1 Replies
Level 15
Apr 25, 2022 1:46:58 PM

when you are in schedule C you need to enter the 475f  info in the section for disposition for non-depreciable assets - use type H - ordinary

this will flow to 4797  part II as ordinary and the QBI section of schedule C in Turbotax

also in the QBI section of schedule C you must check off that this is a specified service trade or business (SSTB). this is by definition under reg 1.199A-5

 

this can limit or eliminate your QBI deduction because there are special income limits when engaged in a SSTB. review form 8995 where the QBI is calculated