199A allows QBI deduction for income from K-1/ sch E eg limited ptr ordinary income from real estate. How to link this income to the calculation of the 20% deduction?

[mdadnj]

Section 199A allows the QBI deduction for ordinary income of a limited partner in an LLC performing real estate development.  The program does not seem to allow linking the K-1 to the calculation of the 20% QBI deduction.  How can this be accomplished?

[DanielV01]

It depends.  You are correct, it can qualify for the deduction.  There are two entries on your K-1 that you must have.  The first is Box 2 (which you are reporting as a K-1 with rental income as compared to ordinary income).  The other is Box 20 with a code of Z.  If this information has not been entered into TurboTax, QBI will not calculate.  If this information is not on your K-1, it's possible that the K-1 was prepared incorrectly.  These codes are necessary for the QBI to calculate.

If you did have these codes, and you entered them into the corresponding places in the K-1 interview, then use Forms Mode to see the QBI Worksheets in desktop TurboTax.  The QBI should be calculating on the K-1 worksheet (at the very end of the worksheet), and then transferring over to the QBI worksheet (simple or complex) and from there the deduction is determined.

Please comment if you need additional assistance with this.