How do I correctly enter Sch K-1, Box 20, Code Z, Section 199A information? Section 199A has Net rental real estate income (loss) and Qualified property.

[lauram7]

On Schedule K-1, Box 20, I have codes N, Z, and AG. A statement is provided showing one value for N, two values for AG (for 2021 and 2020). Schedule K-1, Box 20, Code Z - Section 199A information shows values for Net rental real estate income (loss) and Qualified property. I have entered all of the information as prompted into the section called "We need some information about your 199A income", and here I entered both the Net rental real estate income and the Qualified property information. My question is, when prompted by Turbo Tax to "Enter Box 20 info" what do I put under "Z-Section 199A information"? Do I just put the Net rental real estate income here???

[ThomasM125 · Accepted solution]

Yes, code Z on line 20 of a partnership K-1 schedule would require you to enter the net income of the section 199A entity.

[SidSkot]

Getting error from Smart Check for Sch K-1 Z- Section 199A Information.   I entered code Z on line 20 of a partnership K-1 schedule and I entered the net income on that line for the section 199A entity, as per the suggestion above.  However,  I am still getting an error from Smart Check, as follows......

"Check this Entry

Sch K-1 Wks-Partnership (the name of our partnership):  Box 20 has been selected but no Section 199A income has been entered on Statement A."

I do not understand why I am getting his error.  I entered the income of the partnership.  I do not under how to resolve this?

[JamesG1]

Enter IRS form K-1 (1065) information at the screen Enter Box 20 info,

• Select code Z Section 199A information.  Do not enter a value to the right.
• Click Continue.
• At the screen We need some information about your 199A income, you will likely enter the following information: 
•     Ordinary business income (loss) from this business, and/or
•     Rental income (loss).

Enter these values for the Qualified Business Income Deduction to be calculated.

Some preparers of the K-1 form will include the Section 199A information on a separate statement called a Statement A.

It is possible that additional information may need to be entered.  Click the box to the left to open up entry boxes.

[msc0902]

Thank you! You saved me a lot of frustration! I checked multiple times to make sure I entered the value but I was missing the steps in the page "We need some information about your 199A income." I was so frustrated because I could see there is an amount in the box. Thank you.