Sec 199a K-1 Input. Turbo tax asked "how much Sec179 should be allocated to QBI. K-1's QBI is net of Sec 179. What is this question asking and guidance on amount?

[DanielV01 · Accepted solution]

It depends.  The QBI calculation made on the personal return is a complicated one, especially if the individual is over the threshold amounts of 157,500 if unmarried or married filing separately and 315,000 if married filing joint.  One of the factors that comes into play on the QBI calculation on higher incomes is the amount of unadjusted basis of depreciable property used in the business that contributes to QBI.  The question is asking if the Section 179 deduction  was used on depreciable property that is used to produce qualified business income.  More often than not, the answer to that question is yes.  If the item in question is 100% business use, allocate the entire Section 179 to QBI.  If it is not, you allocate the percentage of the deduction that is connected to QBI.

As I mentioned, this subject is complicated, and here is an FAQ that does provide more guidance:  https://ttlc.intuit.com/replies/7019998