Why is TT including form 8995 (QBI Ded) if the computation results in an amount of $0? Is TT including the form unnecessarily in such an instance, or is form 8995 always supposed to be included if any 'QBI income' was received, no matter how small?
Thanks.
IRS Form 8995 Qualified Business Income Deduction Simplified Computation will be included in the tax return if the tax return contains income that could qualify for a qualified business income deduction. The income source will be listed on line 1.
REIT dividends could qualify the tax return for a QBI deduction but a very small dollar amount may round the deduction to less than $1.
There also may be QBI carryover losses from previous years that reduce a QBI deduction for the current year to $0.
Qualified REIT dividends include any dividends you received from a REIT held for more than 45 days and for which the payment isn’t obligated to someone else and that isn’t a capital gain dividend or qualified dividend, plus your qualified REIT dividends received from a regulated investment company (RIC). This amount could be reported on a Schedule K-1 or on IRS Form 1099-DIV, line 5.
[Edited 03/27/2022 8:04 AM PST]
IRS Form 8995 Qualified Business Income Deduction Simplified Computation will be included in the tax return if the tax return contains income that could qualify for a qualified business income deduction. The income source will be listed on line 1.
REIT dividends could qualify the tax return for a QBI deduction but a very small dollar amount may round the deduction to less than $1.
There also may be QBI carryover losses from previous years that reduce a QBI deduction for the current year to $0.
Qualified REIT dividends include any dividends you received from a REIT held for more than 45 days and for which the payment isn’t obligated to someone else and that isn’t a capital gain dividend or qualified dividend, plus your qualified REIT dividends received from a regulated investment company (RIC). This amount could be reported on a Schedule K-1 or on IRS Form 1099-DIV, line 5.
[Edited 03/27/2022 8:04 AM PST]