Level 2

QBI/199A on multiple businesses

Forum|Forum|7 years ago
April 4, 2019
1 reply
11 views

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.

ProConnect Tax Online

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T

TaxMonkey

Level 7

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.

J

jflintonAuthor

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.

sjrcpa

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.

The more I know the more I don’t know.

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