Mark that an activity qualifies for Section 199A

Alerts and notices

Follow these steps to mark that an activity qualifies as trade or business for Section 199A. This only applies for tax years ending 2018 and later.

  1. Open a client. You will be on the Asset List window.
  2. Choose Setup > Activities.
  3. Select the correct Form / Schedule then click Edit.
  4. Select Yes or No from the Qualifies as a trade or business for Section 199A field.

To use component assets instead of aggregate assets, go to Options > Calculation, then mark the Use component assets instead of aggregate assets for business income deduction box.

To print a report for the qualified business deduction go to File > Print and select the Tax Qualified Property Report. To include non-qualified assets on this report, open Options > Tax Qualified Property Report, then mark the Non-qualified Assets box.

The Qualifies as a trade or business for Section 199A field is left blank by default and is only available for the following entities/activities.

Note: *The field is unavailable for COGS and Bus COGS activities. To enter Yes/No for COGS or Bus COGS, go to the Business activity (or create one if it doesn’t exist) and fill out the field, which will automatically transfer to the COGS or Bus COGS activity.

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