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.
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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!
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.
Is there a self-employed health insurance deduction on the return? Does it reduce the net profit to zero?
Or a SEP contribution for the Sch C with income?
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!
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