Entering Section 199A Information, Box 20, Code Z

Forum|Forum|6 years ago
March 3, 2020
2 replies
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I had two items to report in Box 20. "A" A small amount of interest and "Z" Some rental income. TT did not seem to do anything with the "Z" (Qualified Business Income Deduction). I went back and looked, the amount I had entered as "Z" amount had been dropped.

TurboTax Business Windows

Anonymous

scroll down to the D2 section of the k-1.

gotompkinsAuthor

Level 2

I don't see the D2 section that you speak of on K-1. Last year when I had "Z" entered on Line 14, there was a Schedule K-1 - 199A Supplement (Line 14) created along with the K-! for Form 1041. This year (2019) the Form K-1 that prints by TT, is only one page and on Line 14 TT has dropped what I entered as an amount for "Z" (Qualified Business Income Deduction)

krnba

Level 2

To properly enter your partnership K-1 box 20 code Z amounts into TurboTax, you must Continue through the K-1 interview after you have entered your code Z for box 20. Enter the code Z when you enter the K-1, but you don't need to enter an amount. Continue on, and there is a screen near the end of the interview titled "We need some more information about your 199A income or loss". This screen must be completed in order for your box 20 code Z information to be correctly input into TurboTax.

Note that the instructions are the same if you have a box 17 code V for an S Corp Form 1120S K-1, or a box 14 code I (as in India) for a trust Form 1041 K-1.

Here is a screenshot of that "We need some more information about your 199A income or loss" screen you need:

To get back to the K-1 summary screen and find the Schedule K-1 to edit, click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to find the K-1 you need to edit.

@gotompkins

@LKCT Trustee

It didn't work.. the " Z" appears as an error... I open the form, and the slot to add the $ is locked unless I would over ride it.

vkwong

Level 2

In my K-1 section 199A , Box 20 Code Z references "stmt". The statement has 20 sets of these numbers. Do I just add all the totals? I have no clue how to get a single number.

rental income

W-2 wages

unadjusted basis of assets

Kayla37

Level 2

I have the same question!

Originally, I left it blank and went through to put in the details and while there is a section for rental income and other deductions there isn't a section for unadjusted basis of assets. It's not clear what your supposed to do here at all!

I remember I paid $200 for live help for this last year and TBH it sounded like the person who was helping me wasn't sure what the answer was... I think this is a major flaw / error in turbo tax. We need help with this ASAP!

Extirpator

Level 2

@Kayla37 - I am guessing that the Schedule K-1 has a value in box 2 (rental income) and then in box 20 you have a code Z. Tell TurboTax you have a code Z and don't put an amount (because often there are multiple codes in box 20).

On subsequent screens, TurboTax will ask you about Code Z: Section 199A information. Expand the top line about business income (loss) and then you will see the line for rental income (loss). The second line from the bottom (in 2023) lists "UBIA of qualified property" which is often listed on Schedule K-1s as Unadjusted Basis of Assets.

UBIA stands for Unadjusted Basis Immediately after Acquisition. If you put it all together it would be the Unadjusted Basis [of Assets] [Immediately after Acquisition].