Section 199A provides taxpayers a deduction for qualified business income (QBI). QBI can be distributed to an investor through dividend income. This example looks at the QBI deduction available as reported on Form 1099-DIV.
In general, rental real estate activity is not a qualified business for purposes of the Section 199A deduction. There is a safe harbor available for taxpayers that want to treat rental activity as QBI.
If an individual taxpayer receives qualified business income (QBI) during the tax year, the individual can include Form 8995 to calculate their QBI deduction. This example covers the QBI deduction for a specified service trade or business (SSTB).
If an individual taxpayer receives qualified business income (QBI) during the tax year, the individual can include Form 8995 to calculate their QBI deduction. This example covers QBI deduction with loss carryforwards.
