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Schedule D—Special Rules for Patrons of Agricultural or Horticultural Cooperatives (Coop) Keep for Your Records Caution. Complete Schedule D only if you're a patron of an agricultural or horticultural cooperative. Coop 1 Coop 2 Coop 3 1a. Trade, business, or aggregation name: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

2. Qualified business income allocable to qualified payments received from cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Multiply line 2 by 9% (0.09) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. W-2 wages from trade or business allocable to the qualified payments . . . . . . .

5. Multiply line 4 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Patron reduction. Enter the smaller of line 3 or line 5. Enter this amount on Part II, line 14, for the corresponding trade or business . . . . . . . . . . . . . . . . . . . . . . . .

Schedule D—Special Rules for Patrons of Agricultural or Horticultural Cooperatives (Coop) A specified agricultural or horticultural coopera- tive is a cooperative that markets or is engaged in the manufacturing, production, growth, or ex- traction of any agricultural or horticultural prod- ucts to which Part I of Subchapter T applies. See section 199A(g)(3). Line 2. Qualified payments received from cooperative. Enter your qualified business in- come allocable to qualified payments received from the cooperative. Qualified payments in- clude patronage dividends and per-unit retains allocations. Line 4. W-2 wages from trade or business. Enter your W-2 wages allocable to qualified payments. Part III—Phased-in Reduction Fill out Part III 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 smaller than line 3. Otherwise, skip Part III. Line 20. Taxable income before qualified business income deduction. Enter your tax- able income figured without regard to any de- duction computed on this worksheet (Form 1040, line 7, Adjusted gross income, minus Form 1040, line 8, Standard deduction or item- ized deductions). Line 21. Threshold. Enter the threshold amount, $157,500 (315,000 if married filing jointly). Line 23. Phase-in range. Enter the phase-in range, $50,000 ($100,000 if married filing jointly). Part IV—Determine Your Qualified Business Income Deduction Line 28. Qualified REIT dividends and quali- fied PTP income. Enter your qualified REIT dividends and qualified PTP income. If the net amount is a loss, enter as a negative number. Any resulting loss isn’t netted against net positive QBI; instead, the net loss is carried for- ward to the next tax year and offsets future qualified REIT dividends and qualified PTP in- come. Line 29. Qualified REIT dividends and quali- fied PTP loss carryforward from prior years. Enter your qualified PTP loss carryfor- ward from prior years, if any. Enter as a nega- tive number. Line 30. Total qualified REIT dividends and qualified PTP income. Add lines 28 and 29. If zero or less, enter -0-. If the amount reported on this line is less than zero, it must be reported in the next tax year on the line for PTP loss carry- forward from prior years. Line 33. Taxable income before qualified business income deduction. Enter your tax- able income figured without regard to any de- duction computed on this worksheet (Form 1040, line 7, Adjusted gross income, minus Form 1040, line 8, Standard deduction or item- ized deductions). Line 34. Net capital gain. Enter your quali- fied dividends from Form 1040, line 3a, plus your net capital gain. If you’re not required to file Schedule D (Form 1040), your net capital gain is the gain reported on your Schedule 1 (Form 1040), line 13. If you file Schedule D (Form 1040), your net capital gain is the smaller of Schedule D (Form 1040), line 15 or line 16, un- less either line is zero or less, in which case your net capital gain is zero. Line 37. Qualified business income deduc- tion. Enter this amount on Form 1040, line 9. Line 38. Total qualified REIT dividends and qualified PTP loss carryforward. Add lines 28 and 29; if zero or greater, enter -0-. This loss must be carried over to the next tax year. Line 39. DPAD allocated from an agricul- tural or horticultural cooperative. Enter your DPAD allocated from your agricultural or horticultural cooperative, if any. The amount en- tered on this line can’t be more than your taxa- ble income less your qualified business income deduction (line 33 less line 37). Include this de- duction on Form 1040, line 10, and attach a statement and name it “DPAD 199A(g)” to ex- plain this adjustment that reduces taxable in- come. See instructions for Form 1040, line 10. Coordination With Other Code Sections. A net operating loss under section 172 gen- erally is figured without the QBI deduction, meaning the QBI deduction can’t create or in- crease the net operating loss. Alternative minimum tax. The QBI deduction that is used to determine regular tax is also used to determine alternative minimum taxable income. Net earnings from self-employment aren’t reduced by the QBI deduction when computing self-employment tax. Net investment income isn’t reduced by the QBI deduction when computing net investment income tax. Special Rules Puerto Rico. For purposes of determining QBI, the United States includes Puerto Rico for taxpayers who have taxable income from sour- ces within Puerto Rico that are subject to tax under section 1. Further, W-2 wages are figured by including W-2 wages paid for services per- formed in Puerto Rico without regard to section 3401(a)(8). Chapter 12 Qualified Business Income Deduction Page 57