In determining the qualified business income for Section 199(A) do you take into account items like charitable contributions and 179 deduction that are separately stated. In other words if Line 1 is ordinary income of 100 and there is a separately stated item of 10 charitable contributions then is the qualified business income 100 or 90?
-
-
It appears you are talking about a 1041/1065/1120-S situation in which these numbers appear on a K-1. In that case, I would use Line 1 less the 179 deduction as net business income. The charitable contributions are not really a business expense, but pass through to an individual or partner/member's Form 1040 as an itemized deduction on Schedule A.Last edited by Burke; 10-25-2018, 01:01 PM. -
Thanks for your response.
Client is an individual that has 965 inclusion. However he has unrelated business NOLs from prior years. The software is offsetting the inclusion with the loss. Can the 965 inclusion be offset with the NOL. If not then how do we make the adjustment in the tax software to keep the NOL from offsetting the 965 inclusion.Comment
Comment