Ongoing QBI

[Edsel]

Wasn't much discussion about this in 2018 as it was the first year for QBI.  But in CE seminars we're hearing more since there is a whole year under our belt.

It appears the 2018 QBI situation can affect the 2019 QBI.  It's almost like the QBI has a "basis" except negatives are allowed.  Requiring ongoing calculations from year-to-year.

We were told a 2018 loss on a QBI item now rolls forward into 2019 and reduces any eligible QBI for 2019.

Question:  Is there any recovery of "lost" QBI that can be added to 2019 QBI?  "Lost" QBI could be any QBI which could not be used for any reason in 2018, such as lost because of taxable income.

[Lion EA]

It's not QBI until all the computations are done, just potential QBI until it's netted with other income and compared to the limitation of 1040 income. Nothing's lost. You didn't Qualify for it, thus the Q in QBI.

Negative QBI does roll forward and reduces potential QBI in the next year. We get a new form for that. Whoopee, a new form! (Tongue firmly in cheek)

[Edsel]

Lion, thanks for responding.  I don't often disagree with you, but this time I believe the "Q" in "Qualified" refers to the nature of the income and not whether the deduction survives the hoops it must jump through.  For example a loss doesn't qualify either but we are told we must roll it forward and offset similar income this year.

Is there any recovery of "lost" QBI that can be added to 2019 QBI?  "Lost" QBI could be any QBI which could not be used for any reason in 2018, such as lost because of taxable income, insufficient W-2 issuance, etc.

[jklcpa]

1 minute ago, Edsel said:

Is there any recovery of "lost" QBI that can be added to 2019 QBI?  "Lost" QBI could be any QBI which could not be used for any reason in 2018, such as lost because of taxable income, insufficient W-2 issuance, etc.

 

No.