What figure to enter from K-1 line 20 code Z stmt?

[tagteam]

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@mrmrst wrote:

What is "Forms mode"? How do I get into this? I am using TurboTax on-line, Premier edition.

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The online versions of TurboTax do no support Forms Mode; only the desktop (installed) versions support it.

[LONDONRITZ]

I followed the instructions and I got the page that states
We need some more information about your 199A income or loss

I am using TurboTax online. 

I have 5 passthrough LLCs on my statement and each have the following:
Rental Income (loss)

W-2 Wages

Unadjusted Basis of Assets

1.  Do I add up all 5 Passthrough LLCs' Rental Income (loss) and report it all on 1 line?

2.  Do I add up all 5 Passthrough LLCs W-2 Wages and report it all on 1 line?

3.  There is not an item description that states, "Unadjusted Basis of Assets" The closest heading is: "ABC 123 LLC HAS UBIA of qualified property" Is this the same thing?   Do I add up all 5 Passthrough LLCs Unadjusted Basis of Assets and report it all on 1 line?

Please kindly advise.  

[MaryK4]

Yes, you will want to add the five amounts that are associated with this K-1.  The UBIA is also correct- add them together and enter the total.

@LONDONRITZ

[LONDONRITZ]

Ok.   Thank you for your response. 

Just to give some clarification, "Unadjusted Basis of Assets" and "UBIA of qualified property" Is the same thing?

@MaryK4 
@DavidS127 

Thank you

[tagteam]

@LONDONRITZ Yes, they are the same.

[mkexla]

Hi, I had exactly the same question with an additional complication: My K-1 is for a private equity fund that has five different businesses listed in the attached Box 20 Code Z Statement. I therefore listed five separate Code Z lines in the TurboTax input section. As suggested, I left the amounts blank, and later in the interview TurboTax asks for additional detail on the business including name, EIN, Ordinary Income, and W-2 Wages. I input this information for the first business, but there does not seem to be any way to input the information for the other four businesses since the interview doesn't ask for information on more than one Code z? The accountant that prepared the K-1 insists that these need to be input separately since they all have their own EIN. I switched view from the "Step-by-Step" to "Forms" but similarly, there does not seem to be an obvious way to manually input these here either. Thanks.

[capristar]

Did you ever get a resolution to your question about the check entry message for code Z items on line 20 of K-1?  I have entered the amounts but it keeps telling me they need to be entered when I run the review.

[mkexla]

Hi, no unfortunately no one has answered the question. I've heard from others that the problem can be solved by entering separate K-1s for each of the companies (in my case 5 separate K-1s for the same partnership) or entering the 199A information in Schedule C. I have not checked either possible solution. My understanding is that this mess is because Congress enacted some tax "fixes" after last year's impeachment trial that Intuit never really implemented well... rather disappointing given how many people have K-1s now and how confounding it is to input them. 

[capristar]

Hi mkexla.  Thanks for your response.  I was able to fix the issue I had with getting the "check entry" message saying that amounts needed to be entered for code Z items when they already had been entered.  I went to the forms mode and opened the K-1's that had the error message.  For line 20, the amounts were there but the Z was in red.  I clicked on quickzoom to enter code z section 199a info just below line 20 and then selected the K-1 I needed.  That took me to Section D1 where I could enter the missing info again.  After doing that for each of the k-1's I had an issue with I ran the review again and it detected no problems.  Hope this helps!

[Kel13]

Thank you!! 

[IShouldKnowBetter]

Thank you @capristar. That worked perfectly.

[DavidS127]

Any time there is Section 199A information related to a K-1, whether it all goes on one K-1 or is split between the entry of two or more K-1s, you must enter that Section 199A information in the right place or it will not get picked up.

In TurboTax Online, or the Step-by-Step mode of TurboTax Download CD, here is how to correctly enter your Section 199A information:

You'll need to put the 199A information that came with your K-1 into the categories shown in the "We need some information about your 199A income or loss" and "Let's check for some uncommon adjustments" screens (see two screenshots later in this post). 

For a partnership Form 1065 Schedule K-1, the 199A QBI entry starts by entering code Z on the box 20 screen.

For an S-corp Form 1120S Schedule K-1, the 199A QBI entry starts by entering code V on the box 17 screen.

Form a trust Form 1041 Schedule K-1, the 199A QBI entry starts by entering code I (as in India) on the box 14 screen.

Enter the code Z or V or I when you enter the K-1 box 20 or 17 or 14 screen, but you don't need to enter an amount on that "box" screen.  It doesn't "hurt" to have an amount on that screen, but anything entered there isn't used in the QBI deduction calculation.

Continue on, and after a few more screens, you'll find the two screens you need.  When you check the box next to a category, a place will open up to enter your amounts.  These screens (if applicable to the amount(s) on your statement) must be completed in order for your K-1 QBI information to be correctly input into TurboTax. 

Note that any Unadjusted Basis of Assets amount goes on the "....has UBIA of qualified property" line.

To get back to the K-1 summary screen and and enter your K-1 (or find a 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.

Here are the "We need some information about your 199A income or loss" and "Let's check for some uncommon adjustments" screens where you enter the information from your K-1:

@mkexla

[mkexla]

Thanks, all. Some good suggestions. This issue plus the even more byzantine state tax issues further in the tax prep process pushed me to finally hire a professional preparer this year. Enough headaches and hours of frustration for me dealing with US tax laws!

[skinnydrummer]

This is extremely helpful! Thank you!!

One question:  I have five items on my Section 199A statement.  I can figure out how to categorize and list the amounts for four of them.

How should I classify "SELF-EMPLOYMENT EARNINGS"?  (Screen shot below)

 

Thank you!!

[DavidS127]

That self-employment earnings (loss) is used to calculate the "one-half of self-employment tax" that is deducted from the business income to arrive at "Qualified Business Income" amount. 

If this Section 199A amount is for a passthrough entity (not the "main" entity), that is the amount to report in box 14 code A on the separate K-1 you enter for that passthrough entity (which has only the box amounts related to the passthrough entity).