Question

We show a total qualified business income from PTPs/REITs of $70 for a deduction of $14. We do not own a business and don't know where this item is coming from? Help?

Forum|Forum|5 years ago
April 3, 2021
1 reply
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ColeenD3

it is more than likely from a 1099-DIV. A REIT qualifies for a QBI deduction.

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bobegatesAuthor

You helped explain where the item is coming from (the REIT deduction is probably from a 1099-Div.). Thanks! However, we still don't understand why receiving a 1099-DIV can allow us to take a business deduction, since we don't own a business?

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ToddL99

You don't have to "own" a business to claim the Qualified Business Income deduction; you just have to have qualified business income.

!099-DIV income from an REIT is "qualified business income" for purposes of the QBI deduction. The QBI deduction is not a business deduction, it is a business income deduction.