How can I fix TT subtraction for capital loss from QBI from Sch C earnings? I'm not an SSTB. It wasn't subtracted before.Where can I see how UBIA is calculated for QBI?

Forum|Forum|1 year ago
March 26, 2025
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Since it's a capital loss instead of gain, shouldn't the loss be added to the QBI? Previous capital loss was not calculated into the QBI. I'm using TT Home & Business.

TurboTax Online

Mike9241

capital gains and losses should not affect QBI.

here did you enter the capital loss?

if it was a loss on the disposition of business assets like equipment, that's an ordinary 1231 loss that figures into QBI. it flows to form 4797 and from there to schedule 1 line 4 and not to schedule D.

pcnycAuthor

Capital loss is reported on 1040 line 7. I know capital gain/loss shouldn't affect QBI, so not sure why it's deducting it.

Do you know how TT calculates UBIA? I understand QBI is based on the lower of 20% from Sch C or UBIA, but can't figure out how it's calculating UBIA.

JamesG1

We are not able to view your tax return.

TurboTax does not calculate UBIA. We regularly see UBIA reported by the issuer of a Schedule K-1 (1120-S) on a Schedule A.

UBIA is routinely used in the calculation for the Qualified Business Income Deduction. In most cases, UBIA is the original purchase price of the asset.

UBIA refers to Unadjusted Basis Immediately after Acquisition. See Question 10 of the IRS website for an explanation.

@pcnyc

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