Negative QBI - Spidell

Negative QBI

Log in to Post

Message Board Negative QBI

This topic contains 7 replies, has 4 voices, and was last updated by Anonymous 2 weeks, 5 days ago.

  • Author
    Posts
  • #182920
    Anonymous

    If a client gets a K-1 from real estate investments and when you look at their entities listed out for calculating QBI, if the QBI is negative, do we need to enter in all the investments or can we ignore?

  • #182934
    Library Library
    Participant

    Negative QBI is included in the calculations of total QBI and needs to be entered from’the K-1.

  • #182950
    Anonymous

    Are you sure that we have to enter in the negative numbers?

  • #183128
    Anonymous

    No, you don’t have to enter the negative numbers.  They are sent to the IRS, so your client can just wait until they receive a letter questioning the missing amounts on their return, and then deal with it then.

  • #183234
    Anonymous

    please help!!!

  • #183262
    William Dewberry
    Participant

    Well, its your call as to whether you want to prepare a return ” correctly” or not. If yes, then yes, all info from all K-1 would be entered , both positive, negative amounts. QBI is a net number and can be overall negative, or positive.

  • #183451
    Mike Giangrande
    Participant

    I agree with William Dewberry. I do not agree with Mr. or Ms. Anonymous that suggestions you ignore the K-1.

    You must report 199A items (QBI (positive or negative), W-2 wages, UBIA, etc.) on your client’s return. The treatment of each of these items will depend on where your client falls in relation to the 199A phaseout range.

    At the end of the day, if your client has overall negative QBI, then you must track that because it will offset positive QBI the following year(s). You cannot simply ignore it and hope you don’t get audited later when you have positive QBI that you did not offset against your prior year negative QBI as Mr. or Ms. Anonymous appears to be suggesting.

  • #183504
    Anonymous

    Note to self: don’t assume people can recognize sarcasm.