QBI From Gain on Sale of Business Assets

Forum|Forum|3 years ago
March 9, 2023
1 reply
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I am working in TT Deluxe and have sold oil and gas properties related to Sch C and Sch E. I believe the gain (ordinary income) qualifies for the QBI deduction but I can't find a place to tell TT that. There is no asset disposition worksheet with the 199A qualifying section at the bottom.

RobertB4444

In order to qualify for the QBI deduction for the disposition of assets the assets have to be disposed of by a qualifying entity. Your individual tax return and disposition of personal assets won't qualify for a QBI deduction. You will need to enter the income onto the schedule C or E and not on the D which qualifies for long term capital gains on your personal return.

If you were to file an S-Corp return or a partnership return and have income from the disposition of assets it would qualify for the QBI deduction.

Here is the IRS FAQ about the QBI deduction. A lot of helpful information there.

@Kjl4

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Kjl4Author

They are schedule C assets with income on Schedule C. I can't find a way to get TT to recognize them. They show up correctly on 4797.

ThomasM125

After you enter your business income and expenses, you should see a screen that asks you if the business income qualifies as QBI income. You just need to answer that it does. You will see a similar screen after you enter rental income and expenses.