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QBI deduction not netting a business loss and a business gain

bdp
Level 3

Client has a business gain on one schedule C and a business loss on the other schedule C.  The 2 schedule C's should net out for the QBI deduction.  It is not.  Has anyone else had this issue and how did you resolve it.

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bdp
Level 3

Here is the answer.  By accident I did not check that all investment was at risk on the schedule C.  That limited the loss to 0. There was nothing to net out.  When I clicked the investment was at risk it released the loss and the QBI netted the gain and loss.  All is well!  Thank you everyone!

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4 Comments 4
athaureaux6
Level 8

What is the final number number after they get combined in Schedule C. If the loss in the first business is greater than the gain in the other, it will probably be a loss computed in Schedule C, therefore there is not qbi which is calculated based on the net gain from all businesses. I think that might be the case. Thank you. 

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BobKamman
Level 15

Is there a self-employed health insurance deduction on the return?  Does it reduce the net profit to zero?

abctax55
Level 15

Or a SEP contribution for the Sch C with income?

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bdp
Level 3

Here is the answer.  By accident I did not check that all investment was at risk on the schedule C.  That limited the loss to 0. There was nothing to net out.  When I clicked the investment was at risk it released the loss and the QBI netted the gain and loss.  All is well!  Thank you everyone!