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

[DanielV01]

Are these from REITs?

[glarsen222]

yes they are

[DanielV01 · Accepted solution]

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.

[jrminer47]

i have 199A dividends showing on my 1099 DIV which have nothing to do with REIT's; where do I enter them in TurboTax Business for inclusion in my 1065 and K-1's?

[DavidS127]

Box 5 on 1099-DIV is for "qualified REIT dividends paid by a REIT or section 199A dividends paid by a RIC".  If these came from an RIC, they are a pass-through of qualified REIT dividends received by the RIC as a conduit.

To find the TurboTax Business section to enter the 1099-DIV box 5 Section 199A dividends, click the "magnifying glass Search" icon on the top row, enter "dividend income" in the search window and press return or enter, and then click on the "Jump to dividend income" link.  That page will have a "box" for your Section 199A dividends from box 5 of your 1099-DIV.