Line 17 on K-1 has code V* & AC* and STMT in both boxes.

[momofjbtt]

Hi! I really need some assistance I have a question on both codes on Line 17;  code V* & AC*, and both have STMT next to them. 

Let's start with code V - On the Schedule K-1, Box 17 Code V, Shareholder's section 1199A Information it has the following amounts (fictitious #'s):

Ordinary Business Income: $12,345

W-2 Wages: $123,456

Qualified property: $223,456

What do I input in turbo tax for code V? Do I need to include all of the amounts?

Code AC -  On the Schedule K-1, Box 17 Code AC, Gross Receipts for Sections 448 (c) it has the following information & amounts (fictitious #'s):

Description                                                            Amount

8990 Gross Receipts for 2021                           $111,000

8990 Gross Receipts for 2020                           $112,000

8990 Gross Receipts for 2019                           $113,000

What do I input in turbo tax for code AC? Do I need to include all of the amounts?

[JamesG1]

The Code V amounts are used to compute the Section 199A deduction.  Follow these steps:

• In the K-1 entry screens, at the screen Enter Box 17 Info, select V-Section 199A information.  Leave Amount empty.  This tells the software that Section 199A information will need to be entered for the income previously reported.  Click Continue.
• At the screen We see you have Section 199A income, select the appropriate income description.  Click How would I know this? for more information.
• At the screen We need some information about your 199A income, select the appropriate income description and amount from the 199A detail provided with the K-1.  You also have listed values for W-2 wages and UBIA of qualified property.  Click Continue.

Instructions for Schedule K-1 Form 1120-S (page 17) explains Code AC:

Code AC

Gross receipts for section 448(c). Use the gross receipts amount to figure the business interest expense you can deduct, if applicable. See section 163(j) and the Instructions for Form 8990 for details.

This information is used if you must file IRS form 8990 Limitation on Business Interest Expense Under Section 163(J).

Enter at the screen Enter Box 17 Info under AC - Gross receipts for section 448(c).

@momofjbtt 

[whinnfjord]

Hi, @JamesG1 

I have a VERY similar situation, the difference being that I have a K-1 with income listed in boxes 1 and 2, which the software tells me I need to treat as separate K-1s. The amount of income listed in box 1 is ~10X the amount of income listed in box 2. I also have entries on the K-1 for boxes 11, 12 (code A), 16 (codes C and D), and 17 (codes V and AC). How do I determine which of the information from the various boxes 11, 12, 16, and 17 associated with (and should be filed along with) which of the box 1/box 2 K-1s (i.e., do I enter the info from boxes 11, 12, 16, and 17 for BOTH K-1s or only one of the K-1s? If only 1, how do I know which of boxes 11, 12, 16, and 17 to enter for the "box 1 income" K-1 and which of boxes 11, 12, 16, and 17 to enter for the "box 2 income" K-1?). It doesn't seem right to list the amounts for boxes 11, 12, 16, and 17 in both K-1s (although that does increase my refund amount) since that feels like I'd be "double dipping" for QBI purposes. Any help you could give me would be greatly appreciated and thank you in advance!

[AliciaP1]

You should enter all the information from all the boxes except box 2 on the first K-1.  Then enter another K-1 with the same S-Corp information (name, address, identifying number, and percentage of ownership) and mark that it has box 2 info only.  

You are correct in stating if you enter all the info in both, you are double dipping, and filing an incorrect return.

@whinnfjord