Received a K-1. Box 14 has code I and shows STMT. Ben Qual Bus Income Deduction has only REIT dividends. Do we enter I &that dollar amount? Total or Beneficiary Share?

[jme26]

Beneficiary Qualified Business Income Deduction Information worksheet was provided. Beneficiary from a Trust. The Description shows Merrill Lynch with only information in the REIT Dividends column. There is a total and a beneficiary share (there were several beneficiaries). What do we enter in Turbo Tax for Box 14? Do we enter code I and leave the dollar amount blank and pull these REIT dividends in another place? Or do we enter for Box 14 Code IC Section 199A REIT dividends and then which number do we enter - the total or the beneficiary share?

[DanielV01 · Accepted solution]

In Turbotax, you will enter IC in box 14 and the amount of REIT dividends being reported to the trustee (the beneficiary share, not the total).  This is the amount that will be calculated for the Section 199A deduction.  The supplementary statement you received is the supporting document for these entries if the IRS should ask or question them.

[renogeno]

That may have worked in June, but now there is no "IC" code, only "I". What now?

[MaryK4]

You will enter the Box 14 Code I 199A Income.  As you continue, you will see the Name and employer ID number for the business-- enter this then the next screen will allow you to enter the REIT Dividends and any other information for the QBI.  See below.

@renogeno

[renogeno]

Yes, did all that. There is not really any business  or EIN associated, nothing on the K1 statement. I entered trust name and EIN, entered the REIT dividends, checked the form and the 8895 is showing QBI as $0.

[renogeno]

Any update on this?

[DavidS127]

The issue with REIT 199A dividends reported on a trust Form 1041 Schedule K-1 is being worked on. I will update you when the issue has been resolved.

[Edited 03/02/2020|8:39am PST]

@renogeno

[jlambert64]

I am having the same problem (entering REIT Dividends from a Trust K-1, Box 14, Code I, but not having it appear on From 8995).

Can I be notified as well when this problem is corrected so that I finish my return and file?  Thanks! 

[PBC97]

Same problem with a Trust K-1 and dividends from REITs traded on the NYSE. Any update on resolution appreciated.

[DavidS127]

I believe updates to TurboTax since 3/10/2020 will resolve your issue with REIT/Section 199A dividends reported to you on your trust Form 1041 K-1.  

TurboTax Online will be updated when you sign in.  If you are using TurboTax Download/CD, check for updates (menu at top, Online>>Check for Updates).

@renogeno

@MaryK4