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QBI

Qualified business income for Schedule C, Business

UltraTax CS uses the following to calculate qualified business income (QBI) for Schedule C, Business.
  • Schedule C, line 31 - Net Profit
  • 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
Use the Qualified Business Income - Schedule C worksheet available in the C folder 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 C-3 screen in the Business folder to adjust for income that doesn't qualify, or to use a different amount (including 0).
note
You need to enter the business name on the C screen for proper reporting on QBI Forms.
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 C, line 26, or the forced amount in the
    W-2 wages (Force)
     field on the C-3 screen in the Business folder.
  • Unadjusted basis of qualified property you enter in the asset module. This amount transfers to the
    Qualified property
     field on the C-3 screen in the Business folder. If you aren't using the asset module, you can enter the unadjusted basis of qualified property amount used in this trade or business directly in this field.

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