Form 8995 not calculating correctly for 5 or more businesses

Chartertx4
Chartertx4 Member Posts: 1 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?

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  • CarleneF
    CarleneF FreeTaxUSA Agent Posts: 27
    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.

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