For 2018 the IRS new rules for determining Qualified Business Income (QBI), I am wondering if I this 20% deduction can apply to a K-1 from an LLC I received where I have 99.80% interest and receive 100% of the pass thru profit/losses and I am the managing member/partner that does completely all of the work for the LLC.
Yes - The Qualified Business Income Deduction can apply to income reported on a K-1 from a pass-through entity.
All S corporations and partnerships report each shareholder’s or partner’s share of QBI, W-2 wages, UBIA of qualified property, qualified REIT dividends and qualified PTP income on Schedule K-1 so the shareholders or partners may determine their deduction.
Enter the information from the K-1 into TurboTax and it will calculate any credit for you.
For additional information on the Qualified Business Income Deduction, please see the following FAQs on the IRS website:Yes - The Qualified Business Income Deduction can apply to income reported on a K-1 from a pass-through entity.
All S corporations and partnerships report each shareholder’s or partner’s share of QBI, W-2 wages, UBIA of qualified property, qualified REIT dividends and qualified PTP income on Schedule K-1 so the shareholders or partners may determine their deduction.
Enter the information from the K-1 into TurboTax and it will calculate any credit for you.
For additional information on the Qualified Business Income Deduction, please see the following FAQs on the IRS website: