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Some of my s-corp income is foreign source - how do I correctly report for 199A deduction?

Working on my 1120-S for my S-corp on TurboTax business/windows.

 

My s-corp is a qualified business and not a SSTB, however a small part of the income is foreign. Is this recorded anywhere on the 199A statements, or how do I declared this? Should it show up on the K-1?

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1 Reply
DaveF1006
Expert Alumni

Some of my s-corp income is foreign source - how do I correctly report for 199A deduction?

Generally foreign income is not eligible for the QBI deduction unless certain conditions are met. Please review this link, specifically in the paragraph entitled Non-U.S. Source: Categories of Income. This should guide you in determining if your foreign income is considered Effectively Connected income (ECI) for QBI purposes.  

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