Form K-1 Box 20, Qualified Business Income, Gross receipts for section 448(c)

[Compuski1]

For form 1065, Schedule K-1, Box 20, code AG - an amount is listed for each partner next to "Gross receipts for section 448(c).  Two questions:

1.  How is this amount calculated?

2.  Does this amount affect the qualified business income deduction the partner will be able to take?

Thank you for any help you can provide.

[Mike9241]

448(c) is gross receipts reduced by returns and allowances. this section limits the cash method of accounting in certain situations. it does not affect QBI. 

In general, the section 448 (c) gross receipts test only applies to corporations and to partnerships... 

[convertibledreaming]

@Mike9241 

Help!  Same issue.  How do I figure out that formula?  Last year TTax filled out line 20 on my K1 as $108k even though line 1a on 1065 was $190k.  I never have returns and/or allowances.   This year it's my only "error" and it asks me to manually enter AG  GROSS RECEIPTS FOR SECTION 448(C) .   Help!  This year my 1065 line 1 is $187k. 

[RobertB4444]

@convertibledreaming

Here are the IRS rules for 448(c) that should help you determine the amount to enter.

[convertibledreaming]

Interesting that a lay person would have to read what aggregate rules for different entities are instead of a program we pay to SIMPLIFY our lives looking back at the last 3 years we've filed with them - let alone why doesn't TT just ask us simple questions that could lead to answering that issue instead of throwing it up as an ERROR on our part that needs to be researched.

Ugh. It's too late but thank you. 

By the way, ever notice how in the last 2 years we haven't been able to load 2 TT products on the same computer (windows) ? Anyone with a multi member LLC (husband and wife- for example) has to buy BUSINESS & DELUXE (some personal filing edition), yet the TT techs make us unistall and reinstall each software as we go from file to file. If we enter numbers and have to go back to the company info, we have to unistall the personal to go back and reinstall the business.  (and vice versa) Did it 6 times. Maddening. TT techs said yes, you have to buy multiple products but you can't use them on the same computer at the same time. Well, I've been buying since 2016 & the last 2 years makes me end my allegiance. I'm out. No more double purchases from me ever again.