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I have a consulting business that files a 1065 return that has a loss this year
I have checked that they are QBI eligible but with the Specified Trade or Business
The question is: Since they have a loss there will not be QBI even if the K-1 passes the loss figures through, but should I check not eligible for QBI so nothing passes on the K-1 for this year??
Thoughts??
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Negative QBI must be accounted for and netting against other positive QBI. You need to report it as a passthrough so that the partners will pick that up on their returns, taking into consideration that it's an SSTB.
Still an AllStar