I'm completing my 1120S and K-1's for my S Corp. On the K-1 there is item "X" under Other Information, which corresponds with Section 199a Unadjusted Basis. I'm trying to figure out what the numbers are behind this figure. I don't see it anywhere else and not quite sure what it is.
It MAY be needed to calculate the Qualified Business Income Deduction. (199A)
"If a taxpayer has taxable income above the higher taxable income threshold and owns a business that is not a specified service trade or business, the QBI deductible amount for the business is subject to a limitation based on W-2 wages and/or capital (capital here is measured as the unadjusted basis of certain business assets) (Sec. 199A(b)(2)(B)). The deductible QBI amount for the business is equal to the lesser of (1) 20% of the business's QBI, or (2) the greater of: (a) 50% of the W-2 wages for the business, or (b) 25% of the W-2 wages plus 2.5% of the business's unadjusted basis in all qualified property. Thus, two alternative limitations under Sec. 199A(b)(2) may limit the deductible QBI amount for each business that is included in a taxpayer's combined QBI amount: (1) a pure 50% wage test, or (2) a combined 25% wage and capital test."
If Boston Cap Tax Credit IV series 28 K-1 Section 199a Box 20 Code Z has a $ amount called UNADJUSTED BASIS,
WHICH TurboTax category ( business income, 1231 gain, section 179 deductions, charitable deductions, other deductions, W-2 wages, UBIA of qualified property, and REIT dividends) should I use?
(since there is no unadjusted basis category)
thanx....mark
It is the same as UBIA of qualified property. UBIA is an acronym for unadjusted basis of qualified property.
Publication 535 defines the Unadjusted Basis Immediately after Acquisition (UBIA) as "the basis of the qualified property on the placed-in-service date". Qualified Property includes depreciable tangible property that is held and used by the trade or business at the close of the tax year and is used in producing QBI.
Where on my tax return or in the turbotax program do I enter the Unadjusted Basis of Assets amount that is provided in Box 20, Code Z of the K-1?
After entering the info from Schedule K-1, continue to the page Let’s check for uncommon adjustments. Enter any applicable Section 199A Statement amounts. These screens, to the extent applicable to your Section 199A statement, must be completed for your K-1 QBI information to be correctly entered into TurboTax
See also: How do I claim the Qualified Business Income Deduction as a Schedule K-1 Recipient?
Unadjusted Basis of Assets (UBIA) refers to the original cost to purchase an asset. This amount includes not only the initial price the purchaser paid to acquire the asset but also includes other costs such as expenses and liabilities assumed to purchase it.
UBIA is used to calculate the Qualified Business Income Deduction on IRS Form 8995-A. See Part II line 7 Allocable share of the unadjusted basis immediately after acquisition (UBIA) of all qualified property.
Where exactly do I enter this information? Under the Z code note sure where to enter UBIA.
After you finish entering the information from Schedule K-1, continue to the next few pages. TurboTax will ask you about Section 199A, which is reported from Box 20 Code Z. You will see a page with several boxes, including one for UBIA.