rbynaker
Level 14
06-13-2020
09:01 AM
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I'm assuming that's Lacerte's interpretation of 199A(c)(3)(A)(ii):
The term “qualified items of income, gain, deduction, and loss” means items of income, gain, deduction, and loss to the extent such items are - included or allowed in determining taxable income for the taxable year.
Advise your client to stop making charitable contributions from a business entity. Distribute the money to the owner(s) and have them make the donation directly. I'm not convinced that I agree with the IRS's position that pass-thru donations reduce QBI, but it's easy enough to get around.