The IRS issued a draft of Form 8995 for taxpayers who have qualified business income (QBI), qualified real estate investment trust (REIT) dividends, or qualified income from a publicly traded partnership (PTP) to show the QBI deduction computation under Sec. 199A when they file 2019 tax returns.
Unlike the 2018 Qualified Business Income Deduction—Simplified Worksheet, which is for taxpayer use only, Form 8995 will be submitted to the IRS.
The QBI deduction, created by the Tax Cuts and Jobs Act, allows owners of sole proprietorships, partnerships, S corporations, trusts or estates to deduct up to 20 percent of their qualified business income.