QBI Fee

[ILLMAS]

Just trying to get a feel of what people will be charging for QBI?

a.  X per hour

b. $0 to $25

c. $25 to $50

d. $50 to $100

e. +$100

f. other

 

[Lee B]

Haven't really thought about it, but has to be well in excess of $ 100.

I really wonder how many Turbo Tax returns will be filed with off the wall QBI deductions.

 

[Crank]

I have no idea.  Im still trying to understand the rules. 

[WITAXLADY]

well I was going to say b and c - depends on time and $$

I did one and it was not that bad but I only have 2 clients above the $315,000

[Gail in Virginia]

I am going to say that it depends.  If it is straight forward, absolutely a business, no phase-out or W-2 or un-adjusted basis calculation, then probably somewhere around $25 to $50.  If I am trying to help them determine if their rental is a business, or playing with a lot of calculations, or REITS, it is going to be a lot more than that. 

[Lion EA]

And, I have a couple of businesses in hand (luckily, still missing some info, so I have an excuse to stall) that I am dreading. The extra reporting on the K-1s... I guess I should dive in, but I'm worried and procrastinating. Less worried when I also prepare the personal returns. But, I dread sending the K-1s to some preparer I don't know who'll tell my biz client what a bad job I did !!

[ILLMAS]

1 hour ago, Lion EA said:

And, I have a couple of businesses in hand (luckily, still missing some info, so I have an excuse to stall) that I am dreading. The extra reporting on the K-1s... I guess I should dive in, but I'm worried and procrastinating. Less worried when I also prepare the personal returns. But, I dread sending the K-1s to some preparer I don't know who'll tell my biz client what a bad job I did !!

Where I can find "Other Items" worksheet on the K-1 for QBI entry? , there is a note on the bottom of the K-1 worksheet however I cannot find it.

Thanks

[EricF]

59 minutes ago, ILLMAS said:

Where I can find "Other Items" worksheet on the K-1 for QBI entry? , there is a note on the bottom of the K-1 worksheet however I cannot find it.

Thanks

Find the "other items" worksheet on a tab related to Sch K, Line 20c for partnerships, or Sch K, Line 17d for S corporations.

[JackieCPA]

The extra reporting on the K-1 has found to be a lot simpler than I had originally imagined. There is a box for W-2 wages and a box for the unadjusted basis and boom!

[EricF]

Input of the numbers is simple, but deriving the numbers is the devil in the details.

Section 199A income - You have to adjust the ordinary income from the business by items on Sch K, such as charitable contributions made by the business and the Sec. 179 deduction.

Section 199A W-2 wages - There are numerous methods for coming up with the number, but I think the easiest one producing the largest number is Box 5 of Form W-3.

Section 199A unadjusted basis - You can't use assets older than 10 years old unless they are still being depreciated.  You have to include only depreciable assets. If any assets are in the business through like-kind exchanges there are special rules, and if a partnership has increased basis through a Sec. 754 election you can't use that.

[SaraEA]

But you can use 3- 5- and 7-year assets that are fully depreciated for 10 years from the date of acquisition.  Those of us who like to clean up our asset lists from time to time will wish we hadn't.