QBI/199A on multiple businesses

[jflinton]

I have a client that has 2 Schedule C businesses, one under the SSN and one under an EIN.  One business has a loss, the other a profit.  I though the QBI deduction was based on each business, not the businesses in total.  Right now, there is no QBI because the loss is bigger than the profit.

[TaxMonkey]

Rexamine your understanding of the QBI with regard to multiple business, becuase you will not get a QBI deduction while claiming a net business loss.

[jflinton]

I don't expect to get a QBI on a loss.

Business A has a profit of $250. Business B has a loss of $400.

Does Business A get the QBID? (This was my understanding - each business stands on its own.)

Right now, PCO is netting Business A and Business B together for a loss of $150.

[sjrcpa · Accepted solution]

The software is correct. If the net income/loss of all Qualified Businesses on the return is a loss there is no QBI deduction. Further, the loss carries forward for use in computing next year's deduction.

[jflinton]

Thank you!  There have been so many changes and changes to changes, that I wasn't sure anymore.