Form 8995 - Qualified Business Income Deduction Simplified Computation

What is IRS Form 8995?

When should Form 8995 be attached to Form 990-T?

What information is needed to complete Form 8995?

To complete Form 8995, you'll need the following information:

How to complete Form 8995?

• Complete the initial table by providing the following information:

  A.Trade, business, or aggregation name

  B.Taxpayer Identification Number (TIN)

  C.Qualified Business Income or (loss)

• Determine the Total Qualified Business Income (QBI) by adding the QBI or loss from all listed businesses in the table.

• Enter Carryforward Loss, which is any net QBI loss from prior years carried forward.

• Combine total QBI and prior-year loss (if any) to enter total Qualified Business Income (QBI). If zero or negative, enter 0.

• Multiply the total QBI by 20% (0.20) and enter the QBI deduction.

• Report REIT dividends and PTP income or loss, including any carryforward loss.

• Multiply the total REIT/PTP income by 20% (0.20) to enter the Final REIT & PTP Deduction.

• Add the QBI deduction and REIT/PTP deduction to enter it in Line 10.

• Subtract net capital gains from taxable income before QBI deduction and multiply the result by 20% (0.20) to determine the Income Limitation.

• Enter the Final QBI Deduction, which is the smaller of the preliminary QBI deduction or the income limitation is claimed.

• Enter the Loss Carryforward, any remaining loss from QBI or REIT/PTP carried forward to future years.

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