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    #1

    Qbid

    2023 1040 Client sold an Intangible Asset, a location right, for $120K. 1245 property I believe?
    Paid 80K 20 years ago. 100% Amortized over 15 years. Software recaptures the 80K as ordinary
    income AND calculates a 20% QBID. Is that correct?
    Tags: None
    #2
    Sounds correct regarding the $80K. The additional $40K of Sec. 1231 gain (capital gain) is not eligible for QBI, I believe.

    From TheTaxBook:

    "Dispositions of Section 197 intangibles.If the intangible was
    held for more than one year, any gain on disposition is ordinary
    income up to the amount of allowable amortization (section 1245
    gain).​"
    "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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