nmr12354
Level 3
‎12-07-2019 05:42 AM

I have a client who is an attorney. He receives a K-1 from his firm. Can he take the qualified business income deduction. K-1 income is north of $530k

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Just-Lisa-Now-
Level 15
Level 15
‎12-07-2019 05:42 AM
The income is looking kinda hefty there for QBI.....What happens when you enter the K-1 into the clients return?

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nmr12354
Level 3
‎12-07-2019 05:42 AM
I am getting the deduction since other expenses are coming off the K-1.
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dd4vols
Level 10
Level 10
‎12-07-2019 05:42 AM
and you marked it as SSTB income?
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itonewbie
Level 15
‎12-07-2019 05:42 AM

If the QBI is from law practice, it would not meet the exception for SSTB since your client's taxable income is above the threshold.

The reason it's flowing through is probably because you didn't check the box that the ToB is an SSTB.

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abctax55
Level 15
‎12-07-2019 05:43 AM

'.... since other expenses are coming off the K-1."

Could you explain what you mean by this?

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