QBI income is net expense
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QBI income is net expense (by Laura [MD]) Apr 12, 2019 7:55 PM
       QBI income is net expense (by Laura [MD]) Apr 12, 2019 8:29 PM
       QBI income is net expense (by David [MI]) Apr 13, 2019 5:35 AM
       QBI income is net expense (by CGB [MI]) Apr 13, 2019 6:37 AM
       QBI income is net expense (by LindaJ [NY]) Apr 13, 2019 6:39 AM
       QBI income is net expense (by Laura [MD]) Apr 13, 2019 6:51 AM
       QBI income is net expense (by MikeA [TX]) Apr 13, 2019 9:05 AM
       QBI income is net expense (by David [MI]) Apr 14, 2019 12:40 PM
       QBI income is net expense (by John... [MI]) Apr 14, 2019 4:13 PM
       QBI income is net expense (by Marv [IL]) Apr 15, 2019 5:18 AM

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QBI income is net expense (by Laura [MD]) Posted on: Apr 12, 2019 7:55 PM
Message:

I am doing my taxes now. I am using Turbotax home/business. I have for years. Doing all the reading about QBI income it seemed like the 20% deduction was off gross rental income.

But now I am doing my taxes and turbo tax is using net income (after expenses) for QBI. My rentals always show a loss after expenses/depreciation. So if QBI is net expenses then it is on NO value to me as a rental owner, whose rentals always show losses on my taxes.

I have other income so i want losses on my taxes.

--108.51.xxx.xxx




QBI income is net expense (by Laura [MD]) Posted on: Apr 12, 2019 8:29 PM
Message:

Yep QBI is net income (does NOT include depreciation, but does all other expenses). So if rentals show a loss no QBI deduction. Bummer...

These tax changes are hurting me!! My personal deductions are for my home are limited to $1000, my home mortgage interest is well above that $10,000. --108.51.xxx.xxx




QBI income is net expense (by David [MI]) Posted on: Apr 13, 2019 5:35 AM
Message:

Laura if you end up taking the standard deduction, you can use the fraction of your property taxes and mortgage interest as home office deduction --50.4.xxx.x




QBI income is net expense (by CGB [MI]) Posted on: Apr 13, 2019 6:37 AM
Message:

David, you seem to know alot about taxes. Do you recommend any books to use as a reference? How about Nolo's taxes for landlords? While I trust my tax preparer, I would like to verify. --73.144.xxx.xxx




QBI income is net expense (by LindaJ [NY]) Posted on: Apr 13, 2019 6:39 AM
Message:

Yes, it is off of net. It is off profit, income in your business. If your other income is a w2 job, this will not help you off set it. But it also does not hurt you. It is also off the total amount, so if you have one house that has a profit and one that has a loss, and you QBI both, it is the amount after you add (subtract) them.

In fact, depreciation helps you now, but it hurts you if you sell since you have to recapture that at a different tax rate, and should you chose not to use it over the years, the IRS still considers it that you did. Wait until you get there and see the tax bill!

The standard deduction is larger now, with the thought that less people will need to itemize. I haven't itemized in years since I have no mortgage on my personal home. That hurt me on my taxes,but saved a lot in interest costs.

The tax rules are so complicated and there are plenty of loopholes and deductions. I fault no one for using any of the them to lower their tax burden. The government can change them if the idiots in congress were not pandering to so many groups. I truly believe one should not have to have an accountant to do their taxes, it should be a simple process, but alas it is not.

So the big question is ARE YOU PAYING LESS IN TAXES from a previous year if all income and deductions are the same. Yes, you don't have some deductions, you may be getting less refund, but what is the tax burden under the new laws. Look at the big picture not the little parts and steps.

--108.4.xxx.xx




QBI income is net expense (by Laura [MD]) Posted on: Apr 13, 2019 6:51 AM
Message:

I will be paying over $10,000 more....So I am looking at the big picture. --108.51.xxx.xxx




QBI income is net expense (by MikeA [TX]) Posted on: Apr 13, 2019 9:05 AM
Message:

QBI helped me some, but not as much as I'd hoped. I still owe thousands. --50.26.xx.xxx




QBI income is net expense (by David [MI]) Posted on: Apr 14, 2019 12:40 PM
Message:

"So the big question is ARE YOU PAYING LESS IN TAXES from a previous year if all income and deductions are the same."

Even with QBI, my total income went down, taxable income went up, total fed tex went up by about $500. Brilliant! --50.4.xxx.x




QBI income is net expense (by John... [MI]) Posted on: Apr 14, 2019 4:13 PM
Message:

I have a normal day job and even ignoring my rentals and other side businesses -- meaning just looking at my normal, salaried job -- I owed an extra ~$2000 in tax at the end of the year.

This is basically because politicians wanted people to feel like they had extra in their paychecks each pay period. They felt like they were getting paid more because of political things. The tax tables were adjusted to take less out of each paycheck -- even though, in the end, many of those people owed just as much as before at the end of the year.

So, tax time comes -- and, suddenly, you owe all those extra little per-paycheck "bonuses" back.

I'm seeing it all over. Tons of people on Facebook and other such places going "We did everything the exact same as last year, but last year I got money back and this year I owe $1000!"

It was all political garbage.

- John...

--96.40.xx.xx




QBI income is net expense (by Marv [IL]) Posted on: Apr 15, 2019 5:18 AM
Message:

QBI is calculated on profit from business or rental income. You need to net all your QBI income and losses and that is the figure you use for 20% deduction. If you have a net loss, you carry it forward for future calculations.

FYI depreciation is counted when figuring your net income.

Most tax programs do not use 179 depreciation in calculating QBI. Not sure why.

When you cannot itemize some tax programs use 100% of real estate taxes on your office in home deduction. I will report back on this. --173.15.xx.xxx



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