1.199A-3(b)(2)(ii)(A) says that capital gains/losses are not QBI, including items treated as capital, such as gains or losses under 1231.
A 1231 loss would be treated as capital if it were netted with a 1231 gain.
Client realized a substantial 1231 loss in 2018 and has no capital gains. This is a QBI loss, correct? It must be property sold that was held in a t/b, otherwise it would not have generated a 1231 loss.
Does anyone see a mistake in my thought process? Thanks.