Why am I being asked for a QBI Aggregation Statement when I indicated individual QBI?

Forum|Forum|3 years ago
March 29, 2023
1 reply
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I have a rental and business (self employed) QBI. I indicated that both are "individual", not associated with another business. Yet, TurboTax is asking me for aggregation statement. Why? How can I fix this?

If this is correct, what do I put for the aggregation statement?

Best answer by Matt1811

Are you sure 2021 Form 8995-A does not have the aggregation box checked?

Did your business and the rental BOTH make a profit?

I suggest you go through the interview for both your business and the rental.

Delete the 8995-A and close the program.

The program should again ask about aggregating when you return to the program.

Pease let us know if this takes care of the problem.

To Delete a Form in Desktop:
Simply switch to FORMS (top right corner)
Find the form you want
Select DELETE located at the bottom of the screen
Confirm

To Delete a Form in Online:
Click TAX TOOLS on the left side-bar
Click TOOLS on the Drop-Down
Click “Delete a Form” on the TOOLS CENTER screen
Click Delete next to the form on the list
Confirm and continue

Thanks, @KrisD15 . I tried deleting the 8995A form, but it would immediately add it back after deleting it. I eventually figured out how to fix it by removing the QBI for one of the businesses and then adding it back. When I added it back, TT asks if I want to aggregate this business with the other one. I say no and that fixed form 8995A.

RobertB4444

If your businesses are substantially connected then they can be joined together in order to calculate your QBI deduction. In some cases this can result in a higher QBI deduction and it also reduces the amount of paperwork involved.

Here is a good article on QBI aggregation. Just note that if you do choose to join the two businesses together for QBI purposes then you have to keep them that way.

@Matt1811

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Matt1811Author

Thanks, @RobertB4444. The only thing the two businesses have in common is me. One is a rental property and the other is my self-employment contract work. Does that qualify? If not, how do I separate them in TurboTax? I already indicated "This business is independent of any other activities."

If I can't/shouldn't separate them in TT, what should I put for the "Aggregation Statement?"

RobertB4444

The aggregation idea says that the businesses are substantially linked. If you are a real estate professional and then also renting a house then they are substantially linked. If you are not a real estate professional, then they should not be aggregated.

If you are aggregating, then the statement consists of a description of each trade or business and the name and EIN of each trade or business.

@Matt1811

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