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Qualified business income and deduction for Schedule F, Farm

UltraTax CS uses the following to calculate qualified business income (QBI) for Schedule F, Farm.
  • Schedule F, line 34 - Net farm profit and loss
  • Form 4797, Ordinary Gains and Losses
  • The deductible portion of self-employment taxes
  • Contributions to self-employed SEP, SIMPLE, and qualified pensions
  • Self-employed health insurance deduction
  • Any exclusions for pre-TCJA suspended passive, at-risk, basis, and excess farm losses
The Qualified Business Income - Farm income worksheet is available in Forms view in the F folder. Use it to review the calculation for QBI, as well as any future suspended losses between those happening prior to TCJA and those happening in the current year. Use the
Qualified business income (Force)
 field on the F-3 screen in the Farm folder to adjust for income that doesn't qualify, or to use a different amount (including 0).
For taxpayers whose taxable income exceeds the threshold, UltraTax CS uses the following to calculate the deduction on the Qualified Business Income Component Worksheet:
  • Wages on Schedule F, line 22, or the forced amount in the
    W-2 wages (Force)
     field on the F-3 screen in the Farm folder.
  • Unadjusted basis of qualified property you enter in the asset module. This amount transfers to the
    Qualified property
     field on the F-3 screen. If you're not using the asset module, you can enter the amount of unadjusted basis of qualified property used in this trade or business directly in this field.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1040 Individual
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