How to use the Qualified Business Income Deduction (QBID) analysis worksheet to plan for optimization in Intuit Tax Advisor

Intuit Tax Advisor allows for QBI deduction planning through features that enable the Advisor to efficiently model and calculate how multiple business entities affect the QBI deduction.

The features included are the QBI deduction analysis worksheets and aggregation input functionality that allow the Advisor to understand how their planning suggestions affect the QBI deduction.

You can watch this video for a walkthrough of the process, or continue reading for step by step instructions:

For an existing Schedule C, E, F or Partnership, S Corporation, Fiduciary K-1

Starting in Intuit Tax Advisor after plan creation:

Deduction for Qualified Business Income (20%):

1. From the Federal pre-strategy baseline search or scroll to the Business Income, Rental Income, Farm Income, Partnership Income, S Corporation Income, or Estate/Trust Income section and click and expand. 
2. Select and expand the entity notated by the Entity name and then the Deduction for Qualified Business Income (20%) section, expand, and enter specified QBI data for that entity.  

Entity Aggregation:

1. From the Federal pre-strategy baseline search or scroll to the Business Income, Rental Income, Farm Income, Partnership Income, S Corporation Income, or Estate/Trust Income section and select and expand. 
2. Select and expand the entity notated by the Entity name and then the Deduction for Qualified Business Income (20%) section, expand, and enter a group number for entities that should be aggregated for purposes of the QBI deduction in the Aggregate Tax Identification Number input.

QBI deduction analysis worksheet:

1. From the Strategies tab go to Insights and find and expand Analysis Worksheets. Select the entity desired to analyze the QBI deduction and click the Analyze button.
2. For each entity that has QBI Deduction implications there will be an analysis worksheet. Within the worksheet there are tabs for entity specific QBI component, Phased-in Reduction, and an all entity Federal QBI Worksheet. This worksheet takes the QBI from the imported tax return and is modified by Federal pre-strategy baseline inputs in addition to Strategy Changes that affect QBI and therefore the QBI deduction.

For a new Schedule C, E, F or Partnership, S Corporation, Fiduciary K-1

Starting in Intuit Tax Advisor after plan creation:

Deduction for Qualified Business Income (20%):

1. From the Federal pre-strategy baseline, select Add new activity.
2. Select either Schedule C, E, F or Partnership, S Corporation, Fiduciary K-1. 
3. On the Add new activity window, enter the Entity name, whether taxpayer, spouse, or joint from the dropdown, and select Save.
4. The remainder of the process is the same as if from an existing Schedule C, E, F or Partnership, S Corporation, Fiduciary K-1 above.