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QBI/199A on multiple businesses

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Level 2

I have a client that has 2 Schedule C businesses, one under the SSN and one under an EIN.  One business has a loss, the other a profit.  I though the QBI deduction was based on each business, not the businesses in total.  Right now, there is no QBI because the loss is bigger than the profit.

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Level 15

The software is correct. If the net income/loss of all Qualified Businesses on the return is a loss there is no QBI deduction. Further, the loss carries forward for use in computing next year's deduction.


ex-AllStar

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4 Replies 4
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Level 8

Rexamine your understanding of the QBI with regard to multiple business, becuase you will not get a QBI deduction while claiming a net business loss.

Level 2
I don't expect to get a QBI on a loss.

Business A has a profit of $250. Business B has a loss of $400.

Does Business A get the QBID? (This was my understanding - each business stands on its own.)

Right now, PCO is netting Business A and Business B together for a loss of $150.
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Highlighted
Level 15

The software is correct. If the net income/loss of all Qualified Businesses on the return is a loss there is no QBI deduction. Further, the loss carries forward for use in computing next year's deduction.


ex-AllStar

View solution in original post

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Level 2

Thank you!  There have been so many changes and changes to changes, that I wasn't sure anymore.

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