I feel like I have the same circumstances as listed above, but with the exact opposite result. I have an S-Corp with business income and a disposed asset with Section 179 taken in a prior year, just like kmitch. Again, no gain, loss, or recapture. My K-1 shows a reduction in QBI (specifically a Section 1231 loss) in the amount of the Section 179 deduction. If I were to use kmitch's numbers above instead of my own, my K-1 is kicking out QBI of $62k instead of the $100k as I would expect as well.