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)

Dianna5350

Level 2

Here is the order that should appear in your return in Box 20

if there is a Z, select Z in the drop down and leave the $ blank.
Next screen asks about the risk. indicate you are at risk
Then there will be a screen that appears that says, We see that you have 199A income.Here you have three choices to make. pick one that is applicable to you.
Next screen will say we need some information about your 199A income. Scroll to the section where it mentions XXX has rental income or loss. When you select this, there will be a drop down here you enter the amount.
See if this clears the error.

I followed your instructions but chose "ordinary business income (loss)" and see that my federal refund increased immediately. Is my assumption that the amount I inserted originally in Line 20Z was not used in the calculation of federal taxes due to the "bug"?

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].