TTX BUSINESS: When entering K-1 received, clicking the Box 20 Code Z Box doesn't enable entry of Statement A 199A information

[cathcartd]

This looks like a bug to me...

I have an LLC ("A") that received (from an investment in a different LLC ("B") a K-1(1065) with Box 20 Code Z listed, and accompanying Statement A included with details and values to enter. However, in TTX Business interview, when on the Enter Box 20 Information screen I click the box that says "Note: Check this box if you have entries with codes of Z [etc]. We'll have you enter that information on the next screen." and then click continue, instead of sending me to a screen to enter the Statement A information, TTX instead kicks me back to the summary K-1 screen. Help!

[Anonymous_]

Appears as if it could be a bug. In the meantime, you can enter Forms Mode and input the figures directly on the K-1 you received from the LLC.

[cathcartd]

What is this form called...I am unable to locate it in the list...Statement A input.

[Anonymous_ · Accepted solution]

---

@cathcartd wrote:

What is this form called...I am unable to locate it in the list...Statement A input.

---

Not Statement A, look for "K-1 Partner" in your list of forms, open that form, and scroll down to the bottom. You will see "Section A" at the bottom of that K-1.

[cathcartd]

Thank you for pointing that out, all the way at the bottom.

A final question for you...??

So when the LLC A Sec199 rolls up onto the LLC B Sec199 info, I'm told by TTX Deluxe to fill out a separate QBI Component Worksheet for each source (in my case, each of LLC A and LLC B have amounts listed on the LLC B K-1 Statement A that rolls into my 1040). In TTX Deluxe forms mode, I've found both of these Worksheets in the list on the left, but the one for LLC B I'm unable to put the figures in...doesn't appear to be a manual override choice there.

Help?

[DavidS127 · Accepted solution]

You don't make entries into the QBI Component worksheet.  That QBI Component worksheet is populated by linking it to a source of QBI (e.g., a K-1, Schedule E, or Schedule C that generates QBI).  You link to a QBI component worksheet in the Section D2 question A, a little more than half-way down the partnership K-1 form.  You can either use the QuickZoom button or double-click in the box to get a pop-up.  The pop-up will let you select an existing QBI Component sheet, or allow you to create a new one.

If you don't need or want to aggregate businesses, you use a separate QBI Component sheet for each source.  If you do want to need to aggregate businesses, you link the sources to a single QBI Component sheet. So, you may need to decide whether or not you want or need to aggregate any businesses in 2019.  Once you aggregate, you must continue to aggregate in future years.  But, not aggregating last year does not preclude you from aggregating this year.    Refer to the IRS instructions for Form 8995-A for more information on aggregation.

I didn't quite understand your K-1 situation.  The LLC business tax return you are preparing would generate a single K-1 for your individual return.  

[cathcartd]

Thanks. I've got the two QBI worksheets already in existence (that much occurred automatically). The issue I am having is that one of those worksheets is pre-populated correctly, but the other is pre-populated with zeroes, so it does not match the values provided on Statement A. How to fix? There doesn't seem to be a way at override these values. Nor do I know how to report a BUG to Intuit.

[cathcartd]

Thank you for pointing me to the form instructions. It turns out that those values on the parent K-1 relate to income that is not QBI. Presumably that is why TTAX lists zeroes but still has the worksheet for that parent level. Sure would like TTAX to have one of those pop-up screens that says something along the lines of "looks like your income from X is not QBI because X is a consulting entity, so we've only carried over the QBI from the investment in Y (that is held by X) onto your 1040." Oh well. Onward. And thank you!

[DavidS127]

You are welcome.  Yes, I should have mentioned that if your business is a Specified Services Trade or Business or "SSTB", the QBI deduction could be limited or completely disallowed depending on your total income.