S-Corp and K-1's

[Y-KNOT]

My wife and I own an S-Corp (49% and 51%, respectively).  We generate a K-1 for each of us (have been doing this for over 10 years). When entering the second K-1, Turbo Tax is asking "Should (our S-Corp) be treated as part of a combined business?".  TurboTax provides 2 selections to

This business is part of the following activity:

- (our S-Corp) ... (Part of an aggregated business)

- This business is independent of other activities

I don't recall being asked this question before. 

[DavidD66]

The question relates to QBI.  Aggregation effectively results in trades or businesses that would otherwise be treated as separate and distinct being combined into one trade or business for purposes of calculating the QBI deduction

.

For taxpayers who qualify, aggregation allows the wages and capital limitation of Sec. 199A to be calculated for the combined trade or business rather than for each trade or business individually. Depending on the facts, aggregation may allow a taxpayer to claim a greater QBI deduction than if the wages and capital limitation was applied separately.

If it is your only business, you would answer that it is independent of other activities.