I have an 1120S K-1 with qualified business income. I upgraded to Home & Business and still cannot get the QBI deduction to appear on Form 1040. Why?
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New Member

I have an 1120S K-1 with qualified business income. I upgraded to Home & Business and still cannot get the QBI deduction to appear on Form 1040. Why?

 
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Level 7

I have an 1120S K-1 with qualified business income. I upgraded to Home & Business and still cannot get the QBI deduction to appear on Form 1040. Why?

Did you enter the 199A Code(s) and $$ in the K-1 Box 17? You also have to link the K-1 to a QBI Component Wks. Step-by-Step guides you through all of that.
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New Member

I have an 1120S K-1 with qualified business income. I upgraded to Home & Business and still cannot get the QBI deduction to appear on Form 1040. Why?

Thanks Terry.  I did not notice the drop down menu items in box 17.  About to turn 80 and not as sharp as I used to be.  Director of Corporate Taxes for Mattel MANY years ago.
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Level 2

I have an 1120S K-1 with qualified business income. I upgraded to Home & Business and still cannot get the QBI deduction to appear on Form 1040. Why?

I also have an Sub S consulting firm with all the income being qualified business income. I started the business last year and it had a small loss. I didn't purchase TT business because it's not that complicated of a return. This year I made a profit(< $60,000) and I know to pay myself some wages. A majority of my expenses are travel, postage and supplies so the return is easy to prepare income and expense wise. I did make estimated payments on the income. I have no other crazy adjustments for the QBI like real estate.

My question revolves around the preparation of the K-1 for myself as the only shareholder. I will report  line 1 ordinary income from line 21 of the 1120S. My question is:  how do I determine what code to use on line 17? It seems according to the IRS publication that code V is a catch all for the qbi at line 1 and I should enter 20% of that number in line 17.

thanks,
pm
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Level 7

I have an 1120S K-1 with qualified business income. I upgraded to Home &amp; Business and still cannot get the QBI deduction to appear on Form 1040. Why?

QBI is a complicated calculation and if it turns out to be the same amount as the 1120S K-1 line 1 then probably the business is REALLY simple or it's a fantastic coincidence. In any case, Box 17 Code V is the total QBI *Income* of the business, not the 20% deduction amount for individuals. The deduction is computed separately by each shareholder based on their own return data.
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Level 2

I have an 1120S K-1 with qualified business income. I upgraded to Home &amp; Business and still cannot get the QBI deduction to appear on Form 1040. Why?

That makes sense. It's REALLY REALLY simple return and other than the 50% limitation on meals.
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Level 7

I have an 1120S K-1 with qualified business income. I upgraded to Home &amp; Business and still cannot get the QBI deduction to appear on Form 1040. Why?

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