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Qualified Business Income (QBI)

Qualified property examples

Explanation

The unadjusted basis immediately after acquisition (UBIA) of qualified property amount transfers from the asset module. Assets are treated as qualified property if they're tangible depreciable assets held in the trade or business at the close of the tax year and the depreciable period hasn't ended before the end of the tax year.
An asset enters the
depreciable period
 either 10 years after the asset was placed in service or the last year of the recovery period, whichever comes later.

Examples

  • An asset was purchased July 1, 2002 and had a 5-year depreciable life. The later date is 10 years after the asset was placed in service, July 1, 2012. Because this date ends before the current tax year-end, the asset isn't qualified property.
  • An asset was purchased July 1, 2015 and had a 5-year depreciable life. The later date is 10 years after the asset was placed in service, July 1, 2025. Because this date ends after the current tax year-end, the asset is qualified property.
  • An asset was purchased on July 1, 2002 and had a 39-year depreciable life. The later date is the end of the recovery period, July 1, 2041. Because this date ends after the current tax year-end, the asset is qualified property.
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