Question

A taxpayer with qualified business income who is a patron of an agricultural cooperative will use what form to calculate the qualified business income deduction?

Answer 1

Qualified Business Income Deduction

IRS remedied their audit targeting problem with the new forms.

Use Form 8995 (Qualified Business Income Deduction—Simplified Computation) if:

1.the taxpayer has QBI, qualified REIT dividends, or qualified PTP income;

2.taxable income before QBI deduction isn’t more than $160,700 ($321,400 if married filing jointly); and

3.the taxpayer isn’t a patron in a specified agricultural or horticultural cooperative.

Use Form 8995-A (Qualified Business Income Deduction) if:

1. the taxpayer has QBI, qualified REIT dividends, or qualified PTP income, and

2. taxable income before QBI deduction is more than $160,700 ($321,400 if married filing jointly); or

3. the taxpayer is a patron in a specified agricultural or horticultural cooperative.