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For like-kind exchange and involuntary con- version property, the depreciable period ends on the same date as the relinquished property. The UBIA is the same as the UBIA of the quali- fied property exchanged, decreased by excess boot or increased by the amount of money paid or the fair market value of property received that is not of a like-kind or similar service/use. And the depreciable period of any excess basis of the replacement property is determined using the date on which the replacement property is first placed in service. Generally, property received in a non-recog- nition transaction (for example, section 332, 351, 361, 721, or 731) retains the same unad- justed basis and placed-in-service date as that of the transferor. However, for the portion of the transferee’s unadjusted basis that exceeds the transferor’s unadjusted basis, the portion is treated as a separate qualified property placed in service on the date of the transfer. Property acquired within 60 days of the year end that is disposed within 120 days without be- ing used by the trade or business for at least 45 days generally isn’t qualified property. REIT / PTP Component. Your qualified REIT/PTP component equals 20% of your quali- fied REIT dividends and qualified PTP income or loss (including your share of REIT dividends and PTP income or loss from relevant pass-through entities (RPEs)). Determining your qualified REIT dividends and qualified PTP income/(loss). Qualified REIT dividends include any dividend you re- ceived from a real estate investment trust held for more than 45 days and for which the pay- ment is not obligated to someone else and that isn’t a capital gain dividend under section 857(b)(3) and isn’t a qualified dividend under section 1(h)(11). Plus your qualified REIT divi- dends received from a regulated investment company (RIC). Qualified PTP income/(loss) includes your share of qualified items of income, gain, deduc- tion, and loss from a PTP. It also may include gain or loss recognized on the disposition of your partnership interest that isn’t treated as a capital gain or loss. It doesn’t include any loss or deduction disallowed in determining your tax- able income for the year. Note: PTP income generated by an SSTB may be limited to the applicable percentage if your taxable income is within the phase in-range or completely exclu- ded from qualified PTP income if your taxable income is above the phase-in range. See Schedule A. Taxable Income Limitation. Your total quali- fied business income deduction is limited to 20% of taxable income, calculated before the QBI deduction, less net capital gain. Worksheet 12-A Specific Instructions Be aware that you may need to fill out Sched- ule A, B, C, and/or D, as applicable, prior to starting Part I of the worksheet. Schedule A—Specified Service Trades or Businesses (SSTB) Keep for Your Records Caution. Complete Schedule A only if your trade or business is a specified service trade or business and your taxable income is more than $157,500 but not $207,500 ($315,000 and $415,000 if married filing jointly). If your taxable income isn’t more than $157,500 ($315,000 if married filing jointly), and you aren’t a patron of agricultural or horticultural cooperative, don’t use this worksheet; instead, use the Qualified Business Income Deduction—Simplified Worksheet in the Instructions for Form 1040. Otherwise, complete Schedule D before beginning Part I. If your taxable income is more than $207,500 ($415,000 if married filing jointly), your specified service business doesn’t qualify for the deduction. Part I—Non-Publiclly Traded Partnership SSTB 1 SSTB 2 SSTB 3 1a. Trade or business name: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1b. Taxpayer identification number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Qualified business income from the trade or business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Allocable share of W-2 wages from the trade or business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Allocable share of the unadjusted basis of all qualified property . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Taxable income before qualified business income deduction . . . . . . . . . . . . . . . . . .

6. Threshold. Enter $157,500 ($315,000 if married filing jointly) . . . . . . . . . . . . . . . . . .

7. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8. Phase-in range. Enter $50,000 ($100,000 if married filing jointly) . . . . . . . . . . . . . . .

9. Divide line 7 by line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10. Applicable percentage. Subtract line 9 from 100% . . . . . . . . . . . . . . . . . . . . . . . . . . .

11. Applicable percentage of qualified business income. Multiply line 2 by line 10. Enter this amount on Schedule C or Part II, line 2, for the corresponding trade or business, as appropriate . . . . . . .

12. Applicable percentage of W-2 wages. Multiply line 3 by line 10. Enter this amount on Part II, line 4, for the corresponding trade or business, as appropriate . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13. Applicable percentage of the unadjusted basis of qualified property. Multiply line 4 by line 10. Enter this amount on Part II, line 7, for the corresponding trade or business, as appropriate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II—Publiclly Traded Partnership PTP SSTB 1 PTP SSTB 2 PTP SSTB 3 14. Trade or business name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15. Taxpayer identification number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Page 52 Chapter 12 Qualified Business Income Deduction