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4797 Income Included in QBI
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jbartelscpa
Level 1
Thursday
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No matter what I have tried I have been unable to get the 1231 gain on the 4797 or the 1245 on the 4797 to be included in the QBI calculation? Is this possible or do I need to override the QBI amount?
1 Comment 1
Terry53029
Level 15
yesterday
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What part of form 4797 do you want to include 1,2, or 3.
Form 4797 separates out the I.R.C. §1231 gain, the ordinary income and the gain attributable to recapture from sales or exchanges of business property. Specifically, Form 4797 Part I property is includible as LTCG property (taxed at a favorable rate), and is not QBI. Form 4797 Part II property is not considered STCG property, which is specifically excluded from the calculation. Gain or loss reported on Part II is QBI. The same is true for income reported on Part III of Form 4797.
