Qualified Business Income Deduction

[mytax26]

I have 1099-INT and 1099-DIV incomes, but no business income , but Turbo tax premier is showing me "Qualified Business Income deduction Summary" related to PTPs and REITs.

Is this correct?

[JamesG1 · Accepted solution]

That income may qualify you for the Qualified Business Income Deduction. 

REIT dividends generally are reported on a Schedule K-1 or in box 5 of a 1099-DIV. 

This IRS website states:

REIT/PTP Component

This component of the deduction equals 20 percent of qualified REIT dividends and qualified PTP income. This component is not limited by W-2 wages or the UBIA of qualified property. Depending on the taxpayer's taxable income, the amount of PTP income that qualifies may be limited depending on the type of the PTP's trade or business.

[mytax26]

I checked my dividends and I do have a stock which invests in real estate, so now it makes sense. 

Thank you!!