Form 8995 not calculating correctly for 5 or more businesses

Chartertx4 Member Newcomer
edited October 2023 in Filing my taxes

Form 8995 is not calculating correctly for 5 or more businesses when line 1V is "See Statement". I have 8 Rental Properties entered on multiple pages of Schedule E but when FreeTaxUSA website forwards the information into Form 8995, it does not equal the amounts entered.

Has anyone encountered this or do I just need to contact Support?


  • CarleneF
    CarleneF FreeTaxUSA Agent
    edited October 2023

    Hi Chartertx4!

    A rental property may be a qualifying business for the QBI deduction if it meets any of the following:

    • Your involvement with this property is so extensive that it's considered a trade or business.
    • You rent or license your property to a commonly controlled trade or business operated by an individual, partnership, or S corporation.
    • You meet the IRS safe harbor rules.

    It's possible that some of the properties didn't flow to Form 8995 because of how the questions were answered in the software.