There appears to be an error in the QBI calculation as it relates to vehicles w/input for actual expenses, listed as UBIA, but not being included in the calc. please call
(NOTE: This issue has been submitted to Technical Support)
Client has a Schedule C with over $100K of net income and QBI. NO wages in the Schedule C.
Overall, the client has about $700K of taxable income, but no other QBI related income. Thus due to no wages, the client should get 2.5% of UBIA.
Client has only ONE asset. A vehicle, used greater than 50%, and utilizing the actual expense method, so taxpayer is getting some depreciation. The UBIA of this one asset is being calculated properly AND has a worksheet indicating that the asset does qualify as an asset for UBIA.
The problem is that the QBI calculation does NOT include this in calculating the deduction. After analyzing, we determined that if there were NO "actual expenses" input (in the depreciation input area - ie for gas, repairs, etc) then the program does pick up the qualified asset for the calculation. But put in $1 dollar for any expense, the program does NOT included UBIA for the calculation, even thought it still indicates that the asset IS a qualified asset for UBIA!
We believe there is a programming error, but please let us know either way. We are also happy to provide the client copy to Lacerte for their review.
