On a 1065 partnership return, where do I enter 199A dividends from a brokerage account

[glarsen222]

On a 1065 partnership return, where do I enter 199A dividends reported from a brokerage account? The dividends are mostly from REIT's held in the account.

[DanielV01]

There are two entries.  On Schedule K, you will report the dividends in Box 6a, and, if Qualified Dividends, Box 6b.  However, you will also need to enter the REIT dividends in Box 20, with a code of AC.  Without that code, the distributions will not be reported as qualifying for the section 199A deduction.  While REITs dividends are not technically QBI, they are included along with QBI to determine the Section 199A deduction on the personal returns, but they need to be reported with a code AC in box 20 in order for the IRS to qualify the income for the Section 199A deduction.

[dougf]

If you go into Forms view, add your 199A dividends to Schedule K line 6c (there is a line for "REIT Dividends") and then it generates the Box 20 code AC items automatically for each partner, and also adds the info to the K1 199A supplements.

[Zaneryan1234]

Where and how do I get to this?" On Schedule K, you will report the dividends in Box 6a, and, if Qualified Dividends, Box 6b.  However, you will also need to enter the REIT dividends in Box 20, with a code of AC.  Without that code, the distributions will not be reported as qualifying for the section 199A deduction." I have loaded my qualified dividends in box 6b but it is not reporting to box 20A????

[DavidS127]

To find Schedule K in your TurboTax Business Form 1065 partnership tax return, go to Forms mode, find the "Form 1065 p4-5" form in the left panel.  Click on the Form 1065 p4-5 and it will open in the window.  Scroll down to the line 6 to find the boxes to enter your Section 199A (REIT) dividends.