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Is a PTP a qualified business? The Schedule E worksheet for one of my PTPs is asking if this activity is a qualified business.

The K-1 does show line 20AD income. Other K-1s do show a loss in line 20AD. How do I answer this question?

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1 Reply
DanielV01
Expert Alumni

Is a PTP a qualified business? The Schedule E worksheet for one of my PTPs is asking if this activity is a qualified business.

If the PTP is not from a foreign entity, it is a qualified business.  Your interest in PTP income, while not considered to be QBI, can qualify for the Section 199A deduction if the PTP is not a foreign entity.

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