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QBID

Qualified business income and deduction for Form 4835

UltraTax CS uses the following to calculate qualified business income (QBI) for Form 4835, Farm rental.
  • Form 4835, line 32 - Net farm rental income and loss
  • Form 4797, Ordinary Gains and Losses
  • Any exclusions for pre-TCJA suspended passive, at-risk, basis, and excess farm losses
The Qualified Business Income - Farm rentals worksheet is available in Forms view in the 4835 folder to review the calculation for QBI as well as any future suspended losses between those occurring prior to TCJA and those occurring in the current year. Use the
Qualified business income (Force)
 field on the 4835-2 screen in the Farm rental 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 Form 4835, line 20, or the forced amount in the
    W-2 wages (Force)
     field on the 4835-2 screen in the Farm rental folder.
  • Unadjusted basis of qualified property you enter in the asset module. This amount transfers to the
    Qualified property
     field on the 4835-2 screen. If you aren't 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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