Welcome back! Ask questions, get answers, and join our large community of tax professionals.
  • Sign In
  • Elevate 2026 Pencil Banner
    cancel
    Showing results for 
    Search instead for 
    Did you mean: 

    QBI deduction not netting a business loss and a business gain

    bdp
    Level 3

    Client has a business gain on one schedule C and a business loss on the other schedule C.  The 2 schedule C's should net out for the QBI deduction.  It is not.  Has anyone else had this issue and how did you resolve it.

    0 Cheers

    This discussion has been locked. No new contributions can be made. You may start a new discussion here

    1 Best Answer

    Accepted Solutions
    bdp
    Level 3

    Here is the answer.  By accident I did not check that all investment was at risk on the schedule C.  That limited the loss to 0. There was nothing to net out.  When I clicked the investment was at risk it released the loss and the QBI netted the gain and loss.  All is well!  Thank you everyone!

    View solution in original post

    4 Comments 4
    athaureaux6
    Level 8

    What is the final number number after they get combined in Schedule C. If the loss in the first business is greater than the gain in the other, it will probably be a loss computed in Schedule C, therefore there is not qbi which is calculated based on the net gain from all businesses. I think that might be the case. Thank you. 

    0 Cheers
    BobKamman
    Level 15

    Is there a self-employed health insurance deduction on the return?  Does it reduce the net profit to zero?

    abctax55
    Level 15

    Or a SEP contribution for the Sch C with income?

    HumanKind... Be Both
    bdp
    Level 3

    Here is the answer.  By accident I did not check that all investment was at risk on the schedule C.  That limited the loss to 0. There was nothing to net out.  When I clicked the investment was at risk it released the loss and the QBI netted the gain and loss.  All is well!  Thank you everyone!