K1 entry on Premier flagged, but entry created by TT Business seems correct

[Jeff Rinscheid]

I have an S-Corp (LLC single member) and created my 1120S using Turbotax Business, which generates a K1 for my personal income taxes.   On that K1, line 17 ("Other Information") has a code V, and under the amount just says "STMT".

When I enter that K1 into my personal income tax, Turbotax Premier is flagging that line 17, saying "Box Code V has been selected, but no Section 199A Income has been entered on Statement A"

My 1120S has a "199A Statement A Summary" which has two lines (one in each of two columns) of which one is a loss (negative number) and another is positive (the rental income)....    sounds to me like something should be entered from that on the K1 on my personal income tax, but I can't figure out which one - or why.  

Help, please?

[ThomasM125 · Accepted solution]

Most likely, you have a loss reported in box 1 (business income) on your K-1 schedule, and income reported in box 2 (rental income.) If so, the 199A entries are reporting the respective qualified business income (QBI) components of those entries. 

You will need to enter the K-1 forms twice, one for the ordinary income/loss and one for the rental. Then, you can enter each section 199A amount separately.

[Jeff Rinscheid]

Bingo!   You figured out my situation exactly: negative business income on line one, positive rental income on line two.

Followup question: which "number" from the statement A is my personal tax looking for?   I only see 3 numbers in each of the two columns under "Shareholders share of QBI" - there are

a) the negative business income or positive rental income

b) W2 income

c) UBIA of qualified property

Which number should be entered on each K1?  I assume that I should enter one, with a "V" on EACH of the two resultant K1s, correct?

(Extra credit question: there are only two other numbers on the original K1, a small positive number that is charitable contributions, and a small negative number that is AMT.    Do I put these totals on only one of the two K1s, or do I split them between the two, or do I enter the whole number on each of the two K1s (which would make no sense)?)

Thanks again - I had no idea where to go with this one, and your help is so very welcome!

[JeffreyR77]

You should need only a) and b) for sec 199a purposes.  

You can enter the other numbers on only one of the K1s as these K1s are a subset of the original form generated from your S-Corporation.

[Jeff Rinscheid]

Thank you again.   There is a "Quickzoom" for the entry of the 199A that I did not previously see when the error was flagged.   Working the Quickzoom with the info you provided did the trick (it also wanted my UBIA, but since you had led me to the right place, that was easy to figure out).

Again, thank you for your time and knowledge.