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Qualified Business Income window

This window is available when editing an aggregate asset by selecting
QBI
. You can use this window to exclude the current asset from the qualified business income deduction, and enter your own value for the basis for the income deduction.
This window is available only when you select
Use component assets instead of aggregate assets for business income deduction
. To access this option, select
Setup
 then
Options
.

Exclude asset from qualified income deduction

The
Exclude asset from qualified income deduction
 checkbox is available only for assets that qualify for the qualified business income deduction.
An asset qualifies if it meets one of the following criteria:
  • It has been 10 years or less from the date the asset was placed in service.
  • It has been greater than 10 years since the asset was placed in service but the asset is still within its recovery period or the last full year of the recovery period.
This checkbox is available for only the following entities or activities:
  • 1040 - Business, Bus COGS, Rental, Farm, Farm Rental
  • 1120S - Business, COGS, Rental, Farm, Farm Rental
  • 1065 - Business, COGS, Rental, Farm, Farm Rental
  • 1041 - Business, Bus COGS, Rental, Farm, Sch K-1
  • 990 - OP, OP COGS, Rental
Example
  • An asset was purchased on July 1, 2002 and is depreciated with MACRS using a 5-year recovery period. Since July 1, 2012 is 10 years after the purchase date, this asset is excluded from the report.
  • A machine was purchased on July 1, 2012 and is depreciated with MACRS using a 5-year recover period. Since July 1, 2022 is 10 years after it was placed in service, it is within the 10 year period and the machine is qualified property.

Basis for business income deduction (force)

Enter your own value for the basis for business income deduction. The amount you enter is used as the cost basis on the Qualified Property report. It also changes the amount that the tax return uses if you are using UltraTax.
The
Exclude asset from qualified income deduction
 and
Basis for business income deduction
 fields on the asset's Other tab are unavailable for selection for aggregate assets if the option to use component asset instead of aggregate asset for business income deduction is selected under
Setup
 then
Options
. You can find these fields by selecting the
QBI
 button when editing the component asset.

This article applies to:

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