QBI Deduction

[DMIDave]

This year Turbo Tax is returning a zero QBI deduction vs the 20% deduction in 2019   married & Joint both years

Related facts    2019       2020

AGI                     289K       246K

from Sub S KI

  income             71K          25K

  salaries              98K        102K

turbo tax caclulated

  QBI decuct        14K        zero     

both years active participant and at risk

The turbotax "Qualified Business Income Component Worksheet" brings forward a -18 QBI and the 102K Wages ....   any thoughts on how TT calculates the -18 QBI?

[JamesG1]

The Qualified Business Loss Carryforward can be viewed on the Qualified Business Income Deduction Summary, line 3.

It is deducted from the current year's total.  So, if your have 

QBI entity A   $50,000

QBI entity B   $10,000

Total               $60,000

less carryfwd -18,000

                      $48,000

What makes it more complicated is that QBI A and QBI B can each be limited by the wage / UBIA computations.

The AGI that you are reporting may further limit the calculations.

The Qualified Business Income Deduction Summary is a good explanation of how the deduction is computed.

[DMIDave]

James

Thanks for the response...  Im not sure why but after deleting the K1 entry and reloading,  turbo tax decided that the "preliminary" QBI deduction should be 5000 vs -18...  I had reviewed the original entry several times and am not sure why it was not calculating the full 20%, but now I have the full deduct....  so Im now ready to file...

Thanks

DLC