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Schedule B—Aggregation of Business Operations An individual or pass-through entity may be en- gaged in more than one trade or business. Each trade or business is a separate trade or business for purposes of applying the W-2 wage limitation or the UBIA limitation, dis- cussed earlier. However, you may choose to aggregate multiple trades or businesses into a single trade or business for purposes of apply- ing the limitations if you met the following re- quirements. 1. You or a group of persons directly or indi- rectly own 50% or more of each trade or business for a majority of the tax year, in- cluding the last day of the tax year, and all trades or businesses use the same tax year end, 2. None of the trades or business are a specified service trade or business, and 3. The trades or business meet at least two of the following factors. a. They provide products, property, or services that are the same or that are customarily offered together. b. They share facilities or share signifi- cant centralized business elements such as personnel, accounting, legal, manufacturing, purchasing, human re- sources, or information technology re- sources. c. They are operated in coordination with, or reliance upon, one or more of the businesses in the aggregated group. If a RPE aggregates multiple trades or busi- nesses, you must attach the RPE’s aggrega- tions to your Schedule B. You may not subtract from the trades or businesses aggregated by the RPE, but you may add additional trades or businesses to the aggregation, assuming the rules above are met. If you choose to aggregate multiple trades or businesses, fill out Sched- ule B before starting Part I in Worksheet 12-A. Your aggregations must be reported consis- tently for all subsequent years, unless there is a significant change in facts and circumstances that disqualify the aggregation. Schedule B must be completed each year to show your trade or business aggregations, and must in- clude any aggregation of a RPE in which you hold a direct or indirect interest. Failure to dis- close such aggregations may cause them to be disaggregate. Note. You must combine the QBI, W-2 wa- ges, and UBIA of qualified property for all ag- gregated trades or businesses, for purposes of applying the W-2 wage and UBIA limitations. Line 3(c). Current year qualified business income/(loss). Enter your QBI for each sepa- rate trade or business. Line 3(d). W-2 wages. Enter your W-2 wages from the trade or business. Line 3(e). Unadjusted basis immediately af- ter acquisition. Enter your UBIA of qualified property from the trade or business. Line 4. Totals. If any of your trades or busi- nesses have a net loss for the current year or you have a qualified business net loss carryfor- ward from prior years, you must complete Schedule C before starting Part I. If none of your trades or businesses have a net loss in the current year and you don’t have a qualified business loss carryforward from prior years, enter the total amounts on the appropri- ate lines of Parts II and IV of Worksheet 12-A. Schedule C—Loss Netting and Carryforward Keep for Your Records Trade, business, or aggregation name Taxpayer identification number (a) Qualified business income/(loss) (b) Reduction for loss netting (c) Adjusted qualified business income (combine (a) and (b); if zero or less, enter -0-) 1.

2. Qualified business net loss carryforward from prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Total trade or business losses. Combine the negative amounts on lines 1, column (a), and 2, for all trades and businesses. Enter as a negative number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Total trade or business income. Add the positive amounts on line 1, column (a), for all trades and businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Losses netted with income of other trades or businesses. Enter as a negative number, the smaller of the absolute value of line 3 or line 4. Allocate this amount to each trade or business on line 1, column (b). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Qualified business net loss carryforward. Subtract line 5 from line 3. If greater than zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule C—Loss Netting and Carryforward If any of your trades or businesses have a net loss for the current year or you have a qualified business net loss carryforward from prior years, you must complete Schedule C before starting Part I. Schedule C offsets your trade or business net losses against net income from your other trades or businesses. The net loss must be ap- portioned among all your trades or businesses with net income in proportion to their net in- come. Note. The line items for this schedule are computed out of order: first figure line 1, column (a), and line 2; then skip to lines 3 through 5; and come back to line 1, columns (b) and (c). Line 1, column (a). Qualified business in- come or (loss) from the trade or business. Enter each trade’s or business’s income or loss. If you aggregated multiple trades or busi- nesses into a single business on Schedule B, enter the aggregation group name, that is Aggregation 1, 2, 3, etc., instead of entering the business name and TIN along with the aggrega- ted trade’s or business’s total income or loss. Line 2. Qualified business net loss carryfor- ward from prior years. Enter your qualified business net loss carryforward from prior years, if any. This is the amount reported in the prior year on line 6. Line 1, column (b). Reduction for loss net- ting. Apportion the amount from line 5 among all your trades or businesses with net income in proportion to their net income. Page 54 Chapter 12 Qualified Business Income Deduction