1120S and QBID entries on the K-1?

[avjunior]

Does TurboTax Business handle completing the 1120S and figuring out what to put on the 1120S K-1's Box 17 codes V through Z?

[Anonymous_ · Accepted solution]

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@avjunior wrote:
Does TurboTax Business handle completing the 1120S and figuring out what to put on the 1120S K-1's Box 17 codes V through Z?

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 Yes, at least with respect to Line 17 Code V ( Codes W-Z are reserved for future use at this point).

The 1120-S module will generate a K-1 with a V code on Line 17 along with a QBI statement for shareholders.

[avjunior]

Thanks!  How about the codes AA,AB,AC and AD?  Are these necessary on an 1120S K-1?

[Anonymous_]

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@avjunior wrote:

Thanks!  How about the codes AA,AB,AC and AD?  Are these necessary on an 1120S K-1?

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Have a look at the information available at the link below. TurboTax Business supports Form 8990, but it would likely have to be completed using Forms Mode.

https://www.irs.gov/instructions/i1120ssk#idm139641016878176

[avjunior]

Thanks again!

[avjunior]

In a really simple case of an S-corp where the K-1 has only line 1 (ordinary business income) and line 11 (179 deduction) would code V be line 1 minus line 11?

[Anonymous_]

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@avjunior wrote:

In a really simple case of an S-corp where the K-1 has only line 1 (ordinary business income) and line 11 (179 deduction) would code V be line 1 minus line 11?

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You do not need Form 8990 for that. You do not need Forms Mode for Line 17 Code V.

[avjunior]

As I'm digging into this and learning it seems for 2019 and 2020 the 1120S instructions indicate that a Code V in box 17 of the partner's K-1 should be accompanied by a statement A, B or C.  Statement A "QBI Pass-Through Entity Reporting" requires the QBI, W-2 Wages and UBIA of qualified property.

Does Trubotax business generate any of these statements?

[Anonymous_]

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@avjunior wrote:

Does Trubotax business generate any of these statements?

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Yes, Statement A is typically generated.

[avjunior]

I deduct all property in first year via section 179.  What is UBIA for me?  Just the property I buy in the current year and deduct?  Or is it all the property I've bought and deducted and still use?

[Mike9241]

"For purposes of determining your UBIA for all qualified property, the unadjusted basis immediately after acquisition means the basis on the placed-in-service date. Qualified property includes tangible property subject to depreciation under section 167 that is held, and used in the production of QBI, by the trade or business (or aggregated trades or businesses) during and at the close of the tax year, for which the depreciable period hasn’t ended before the close of the tax year. The depreciable period ends on the later of 10 years after the property is first placed in service by you or the last day of the last full year in the applicable recovery period under section 168(c) - ie what the class life is for the asset so 179 does not reduce UBIA

[avjunior]

So if all my property is section 179 it counts toward the UBIA total until either it's disposed of or 10 years, whichever comes first?

[JamesG1]

IRS section 168(C) lists the various recovery periods:  3-year property, 5-year property, 7-year property, etc.

The depreciable period ends on:

• The later of 10 years after the property is first placed in service by you, or
• The last day of the last full year in the applicable recovery period under section 168(c).

So 5-year property counts in UBIA:

• The later of  ten years after the property is first placed in service, or
• Five years.

The property counts for ten years if you still own the property.  Claiming section 179 depreciation does not affect UBIA.