QBI and S Corp health insurance

Technical topics regarding tax preparation.
#1
Andrew  
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It is my understanding that to calculate QBI correctly, the shareholder W-2 wages you use for the QBI deduction do not include the SH health insurance. The lesser of box 1 or box 5 of shareholder W-2 is used to calculate the wages for QBI. Shareholder health insurance is never included in Box 5 W-2.

Thoughts?
 

#2
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Thoughts?


My thought would be for you to research this a little bit and then come back and tell us about the 3 permissible methods that can be used. Not only would this answer your question, it would enhance your knowledge beyond your question.
 

#3
Andrew  
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You seem to be an expert on this topic so why don't you tell us what you know? If you don't want to answer that is fine but an answer like "do the research" can be given for any question on this board. We're trying to help each other here on this board with what we already know and what someone else may not yet. Thank you.
 

#4
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viewtopic.php?f=8&t=14347&p=140829&hilit=qbi+sehi#p140829

viewtopic.php?f=8&t=16222&p=143408&hilit=qbi+sehi#p143408

viewtopic.php?f=8&t=17180&p=151115&hilit=qbi+sehi#p151115

Jeff makes a very good suggestion. This topic has been beaten to death in other discussions. There's really no need to have the same discussion once again. I've helped you out with three above. There are many more.
~Captcook
 

#5
EADave  
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Hey Capt,

Are you still of the mindset that QBI should not be reduced (twice) at the shareholder level? Just curious, I spotted your response last year and I was wondering if you’ve spotted any guidance to change your opinion.

And Jeff, be easy on the Beav next time. This has been a rough couple of years.
 

#6
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I don't believe an ADJ for SEHI should be made on a 1040 for an s-corp shareholder.
~Captcook
 

#7
EADave  
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I assumed so, thank you for the info!
 

#8
Andrew  
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Okay, I go with CaptCook, which is what my software does, it includes the SEHI shareholder health insurance as wages for QBI. I read the threads but there didn't seem to be a definitive answer.
 

#9
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This is from a webinar with TaxSpeaker...

Special Note For S Corp SHs. The SE health insurance deduction for an S corporation
shareholder is allowed as a result of wages paid to the shareholder, not passthrough K-1 income
(IRS Notice 2008-1). S corp SHs with no wages are not allowed a SE health insurance deduction
regardless if they have K-1 passthrough income - wages from the S corp are required. Wages,
however, are specifically excluded from the definition of QBI, including wages paid to an S
corporation shareholder. While the law and regulations do not specifically address S corporation
shareholder wages, it seems clear that the SE health insurance deduction for an S corp
shareholder is NOT ATTRIBUTABLE to "gross income from the trade or business used to
calculate" QBI, and, therefore, the SE health insurance deduction for an S corp shareholder does
NOT reduce QBI.
 


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