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Line 1, column (c). Adjusted qualified busi- ness income. Subtract line 1, column (b) from column (a); if zero or less, enter -0-. Enter this amount on the corresponding line on Part II. Note. If the adjusted QBI from the trade or business is zero or less after the reduction for loss netting, then the amount reported for W-2 wages and UBIA of qualified property must be zero for that trade or business, as the actual amounts aren’t allowed in computing your quali- fied business income limitations. Line 6. Qualified business net loss carryfor- ward. Subtract line 5 from line 3. If greater than zero, enter -0-. The amount reported on this line must be reported in the next tax year on line 2, Qualified business net loss carryforward from prior years. Note. If you have an overall net loss for the year, you don’t qualify for a QBI deduction in the current year. Worksheet 12-A. Qualified Business Income Deduction Worksheet Keep for Your Records Part I: Trade, Business, or Aggregation Information 1. (a) Name (b) Check if specified service (c) Check if Aggregated (d) Taxpayer identification number (e) Check if Patron A.
B.
C.
Part II: Determine Your Qualified Business Income Component A B C 2. Qualified business income from the trade, business, or aggregation (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Multiply line 2 by 20% (0.20). If your taxable income is $157,500 or less ($315,000 if married filing jointly), skip lines 4 through 12 and enter line 3 on line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Allocable share of W-2 wages from the trade, business, or aggregation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Multiply line 4 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Multiply line 4 by 25% (0.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Allocable share of the unadjusted basis of all qualified property . . . . . . . . . . .
8. Multiply line 7 by 2.5% (0.025) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9. Add lines 6 and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10. Enter the greater of line 5 or line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11. W-2 wage and qualified property limitation. Enter the smaller of line 3 or line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12. Phased-in reduction. Enter amount from Part III, line 26, if any. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13. Qualified business income deduction before patron reduction. Enter the greater of line 11 or line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14. Patron reduction. Enter the amount from Schedule D, line 6, if any . . . . . . . . .
15. Qualified business income component. Subtract line 14 from line 13 . . . . . . . 16. Total qualified business income component. Add all amounts reported on line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part III: Phased-in Reduction Caution. Complete Part III only if your taxable income is more than $157,500 but not $207,500 ($315,000 and $415,000 if married filing jointly), and line 10 is less than line 3. Otherwise, skip Part III. A B C 17. Enter amounts from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18. Enter the amount from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19. Subtract line 18 from line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20. Taxable income before qualified business income deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21. Threshold. Enter $157,500 ($315,000 if married filing jointly) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter 12 Qualified Business Income Deduction Page 55