QBI calculation
Business activity income (loss)
The qualified business income (QBI) for each activity is equal to the net income of the activity. The QBI from a Page 1 activity is equal to Form 1065, page 1, line 22, less the income from a farm activity and a pass-through entity.
Other income (loss) is the sum of these: | Other deductions is the sum of these: |
|---|---|
Specially allocated farm income | Royalty deductions |
Specially allocated oil and gas income | Oil and gas production taxes |
Specially allocated Form 4797 ordinary income | Oil and gas dry hole costs |
Specially allocated taxes | Oil and gas lease operating expenses |
Specially allocated depletion | Oil and gas other expenses |
Specially allocated meals | Oil and gas direct depreciation |
Specially allocated page 1 depreciation, if included with the activity | Oil and gas allocated overhead |
Specially allocated cost of goods sold depreciation, if included with the activity | Specially allocated royalty depreciation |
Specially allocated farm depreciation, if included with the activity | Specially allocated rental real estate depreciation, if not included in the activity |
N/A | Specially allocated other rental depreciation, if not included in the activity |
N/A | Specially allocated farm rental depreciation, if not included in the activity |
N/A | Specially allocated farm depreciation, if not included in the activity |
N/A | Specially allocated page 1 depreciation, if not included in the activity |
N/A | Specially allocated cost of goods sold depreciation, if not included in the activity |
Qualified W-2 wages
The application uses the wages entered in the following fields for each activity reported on the Section 199A Information Worksheet.
Activity | Fields included |
|---|---|
Page 1 |
|
Farm |
|
Farm Rental |
|
Rental |
|
You can also force the amount of W-2 wages for the activity in the
Qualified W-2 wages (Force)
field on the QBI screen if the wages entered aren't the Qualified W-2 wages.
