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Lacerte Simplified QBI Worksheet and QBI Calculations - Information Update December 21

Current Version Note (39.0103):  The current version of 2018 Lacerte includes the simplified worksheet computation only.  This worksheet will only generate if the taxpayer’s taxable income is below the phase-in threshold ($315,000 MFJ and $157,500 for all others). If their taxable income is higher, they will be required to use the complex worksheets which have not been released in Lacerte, yet. In this situation, we will not generate any worksheets or calculate any amount on Form 1040, line 9.  The complex worksheets were released by IRS in DRAFT form in Publication 535 on December 19, 2018.

We are actively working the complex QBI computations and plan to include these in the January 9 scheduled program release. For a complete list of program update release dates, see 2018 Lacerte Release Availability and Dates: 2018 Lacerte Release Availability and Dates (link provided below) 

In general, we will take the income from Schedule C, F and passthrough K-1s on Schedule E, along with any ordinary gains from the disposition of business property linked to those schedules, and try to automatically calculate the QBI. According to Publication 535 (draft date Dec 19, 2018), page 2, rental properties do not rise to the level of trade or business and will not automatically be included as QBI.  However, the Schedule E rental input screen, in the QBI section, will include the ability to include rental QBI income in the calculation.  

To perform tax planning, please use the Lacerte Tax Planner, which includes all the QBI calculations and limitations. Export the client from the 2017 Lacerte Tax program to the Tax Planner, to create a base year for planning. 

2018 Lacerte Release Availability and Dates:

Lacerte Simplified Worksheet Section 199A - Qualified Business Income Deduction:

2018 Draft Publication 535:

1 update

January 10, 2019 

Version 39.0109

Lacerte Complex Worksheet Section 199A - Qualified Business Income Deduction: