K-1 entries in boxes 1, 2, & 3

[ToddL99]

That statement  ("However, the application of the passive loss limitations to tiered PTPs is not entirely clear....) is a legal disclaimer because the issuer really doesn't know how passive loss limitations might flow through and affect an individual investor's tax return -  in the vast majority of cases, they won't.

Unless you have a significant investment in this partnership and there are significant passive losses in the lower tiers, this issue should not have a material effect on your return.

[sparky8]

@ToddL99  thanks so much! 

[genie4]

If you have multiple K-1 entries (for lines 1 and 2 in my case) with same Tax ID #:

Later in the schedule K-1 entry, Turbotax asks about "Aggregation of Business Operations".  Since this is the business split up by Turbotax for programming reasons, should the answer be "yes" and should form 8995-A schedule B filled out?  I get more of a return with the aggregation of business operations "yes" than without.  While I understand that the "Aggregation" was initially created for like small businesses LLC combining, in this case it is the identical business...

Thanks for your answer!

[PatriciaV]

Here are the rules for combining businesses for the QBI deduction:

1. You or a group of people own at least 50% of each trade or business for most of the tax year, including the last day of the tax year, and all trades or businesses have the same tax year-end.
2. None of the trades or businesses are an SSTB.
3. All trades or businesses meet at least two of these conditions:
   • They provide products, property, or services that are the same or are customarily offered together.
   • They share facilities or significant centralized business elements such as personnel, accounting, legal, manufacturing, purchasing, human resources, or information technology resources.
   • They're operated in coordination with, or reliance upon, one or more of the businesses in the aggregated group.

If your businesses meet these requirements and your 2024 taxable income before the Qualified Business Income (QBI) deduction is $191,950 or less ($383,900 or less if filing jointly), there's no advantage to aggregating your businesses for the QBI deduction. However, if your taxable income exceeds these amounts, aggregation may be advantageous, depending on your relative income, W-2 wages paid, and business assets. 

Once you aggregate your businesses for QBI purposes, you must continue to do so on future returns.