denise
Level 2
03-28-2019
09:57 AM
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I have entered K1 info which includes only rental income, interest income and QBI amounts. The taxpayer also has a Sch C business that creates the only SE tax on the return and qualifies for QBI. When I look at the calculation of the QBI deduction related to the K1 rental income, the deduction is being reduced by a portion of the SE tax. I see the calculation when I scroll down on the Sch K1 worksheet to Section D, Line 5b and c. The line 5 says “Self employed deductions connected to THIS business”. If the SE tax is from the Sch C business and is not related to this rental business why did it populate and reduce the QBI?
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