Delete Form 8995

[ams0714]

I'm trying to delete from 8995 because I don't have any qualified business income or a business. I follow the instructions to delete the form and it says the form is deleted.  But it is not.

[AliciaP1]

Form 8995 does not get created in TurboTax if you have not entered business income and marked it as Qualified Business Income.  If you report rental income on Schedule E, it can be QBI if you answer the questions TurboTax prompts that it is.  To find the trigger for the form you need to go back through the entire interview process for your entries on Schedule C, Schedule E, Schedule F, and/or Schedule K-1.

[ams0714]

Hi!  Thank you for the response.  I checked what was entered and I did not enter any info Schedule C, Schedule E, Schedule F, and/or Schedule K-1.  It looks like the 8995 is getting created because I have a 1099-DIV with Section 199A Dividends  reported on Line 5.  This is being carried over to the 8995.  The problem is that I do not have a business so Turbo Tax should not be creating the 8995.  The 8895 then provides a deduction that is carried over to line 13 on the 1040.  

[JohnB5677]

Yes, you do qualify for the QBI.  These are considered REIT dividends.

"REIT/PTP Component. This component of the deduction equals 20 percent of qualified REIT dividends and qualified PTP (Publicly Traded Partnership) income. This component is not limited by W-2 wages or the UBIA of qualified property...   The deduction is limited to the lesser of the QBI component plus the REIT/PTP component or 20 percent of the taxpayer's taxable income minus net capital gain."

Qualified Business Income Deduction

[ams0714]

How do I qualify for the QBI? On the IRS website it states that to qualify for the QBI that "Many owners of sole proprietorships, partnerships, S corporations and some trusts and estates may be eligible for a qualified business income."  I am neither of these. 

 

[DawnC]

Did you get a 1099-DIV with an amount in Box 5?  @ams0714 

Certain taxpayers are entitled to a deduction under section 199A computed by reference to several types of income, including qualified REIT (Real Estate Investment Trusts) dividends. A qualified REIT dividend is generally a dividend from a REIT received during the tax year that is not a capital gain dividend or a qualified dividend.

A RIC (regulated investment company) that receives qualified REIT dividends in a tax year may generally pay section 199A dividends for that year, which certain shareholders of the RIC that meet holding period requirements may treat as qualified REIT dividends for purposes of section 199A. 

QBI Deduction

[ams0714]

Yes, I received a 1099-DIV with an amount in Box 5. But the amount that is reported on Form 8995 Line 15 is for a qualified business income deduction.  In the note section on Form 8995 it states that " You can claim the qualified business income deduction only if you have qualified business income from a qualified trade or
business, real estate investment trust dividends, publicly traded partnership income, or a domestic production activities deduction passed through from an agricultural or horticultural cooperative. "  None of these are applicable to me.

Further, box 1 wants Trade, business, or aggregation name , Taxpayer identification number, and Qualified business income or (loss).   

I'm sorry I'm not understanding how I can claim a qualified business deduction when I do not qualify as any any type of organization as specified in the first paragraph.

[JamesG1]

You may be qualifying for the Qualified Business Income Deduction on the basis of the REIT / PTP component.  See REIT/PTP Component under Q1 in this IRS document.

The REIT / PTP component can be generated from qualified real estate investment trust (REIT) dividends or qualified publicly traded partnership (PTP) income.  This component would be reported on 1099-DIV or a K-1.

@ams0714 

[ams0714]

@JamesG1 Thank you James!  When I look at A1 under the section you referenced it states that "Section 199A of the Internal Revenue Code provides many owners of sole proprietorships, partnerships, S corporations and some trusts and estates, a deduction of income from a qualified trade or business. The deduction has two components."  Then it goes on to discuss the QBI Component  and the REIT/PTP Component.  However, nowhere in the document - or at least what I am reading - does it state that an individual can take the deduction as part of the REIT/PTP Component. 

Where does it state that an individual can take the deduction - it only states that sole proprietorships, partnerships, S corporations and some trusts and estates can take the deduction.  

However when I look up the REIT/PTP Component under Q1 in the Tax Cuts and Jobs Act, Provision 11011 Section 199A - Qualified Business Income Deduction FAQs doc you provided 

[ThomasM125]

The Qualified Business Income (QBI) deduction applies to income from business entities such as real estate investment trusts and partnerships, but the deduction itself is taken only on your personal tax return form 1040. The deduction does not appear on a partnership form 1065, trust form 1041 or S corporation form 1120-S. It is intended to allow owners of pass through entities to benefit from a reduction of tax that was afforded C corporations in the 2017 Tax Cuts and Job Act.

You will find the following from the IRS article Qualified Business Income Deduction as evidence that REIT dividends and qualfied PTP income are considered QBI:

Here is a link to the article:  Qualified Business Income - IRS article

@ams0714 

[PhilMcMeen]

Form 8995 was transferred from 2021.  The business is no longer in operation in any of 2022. How can I get rid of it in my 2022 Taxes?

It generates a lot of mileage questions etc...

[MonikaK1]

If you are certain that the form doesn't apply this year, you can delete it.

To delete a form in TurboTax Online:

1. Open or continue your return in TurboTax.
2. In the left menu, select "Tax Tools" and then "Tools".
3. In the pop-up window Tool Center, select "Delete a form".
4. Select "Delete" next to "Form 8995" and follow the instructions.

To delete a form using TurboTax Desktop:

1. Sign in to your TurboTax account
2. Switch to Forms Mode by selecting the Forms icon
3. From the menu, select the form you want to remove (if you don't see it, select Open Form at the top)
4. From the Forms menu, select Remove [form name]
5. Follow any onscreen instructions to remove the form or forms

For Mac users, the Forms menu appears at the top of the screen along with File, Edit, View, etc. When you click on the Forms menu, after selecting Form 8995, one of the choices will be "Remove Form 8995".