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@TaxGuyBill wrote:

If I remember correctly, the double subtraction is based on an Frequently Asked Question from the  IRS, but logic dictates that would be the incorrect treatment.

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I recall this is what we discussed in a relatively lengthy thread when 199A was first enacted.  We expected the regulations to address that but they didn't.  This, however, is a problem that is unique to S corp as partnerships can get around that by adjusting the distribution instead.

Ah, found it.  Here's the thread: https://proconnect.intuit.com/community/lacerte-discussions/discussion/lacerte-says-the-qbi-deductio...