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The Qualified Business Income deduction (also called the QBI deduction, pass-through deduction, or section 199A deduction) was created by the 2017 Tax Cuts and Jobs Act (TCJA) and is in effect for tax years 2018 through 2025.

The Code V entries are likely used to compute the Qualified Business Income Deduction (section 199A information).  You are allowed a deduction of up to 20% of your qualified business income as a deduction on line 13 of your Federal 1040 tax return.

The Code V amounts are likely used to compute the section 199A deduction.  Follow these steps:

• In the K-1 entry screens, at the screen Enter Box 17 Info, select V-Section 199A information.  Leave Amount empty.  Click Continue.  This tells the software that Section 199A information will need to be entered for the income previously reported.
• At the screen We see you have Section 199A income, select the appropriate income description.  Click How would I know this? for more information.
• At the screen We need some information about your 199A income, select the appropriate income description and amount from the 199A detail provided with the K-1.  In many cases, you will also select and enter values for W-2 wages and UBIA of qualified property.  Click Continue.

Instructions for Schedule K-1 Form 1120-S (page 17) explains Code AC:

Code AC

Gross receipts for section 448(c). Use the gross receipts amount to figure the business interest expense you can deduct, if applicable. See section 163(j) and the Instructions for Form 8990 for details.

This information is used if you must file IRS form 8990 Limitation on Business Interest Expense Under Section 163(J).

IRS form 7203 S Corporation Shareholder Stock and Debt Basis Limitations is used by S corporation shareholders to determine their basis in the S corporation when the shareholders: 

• Are claiming a deduction for their share of an aggregate loss from an S corporation (including an aggregate loss not allowed last year because of basis limitations), 
• Received a non-dividend distribution from an S corporation, 
• Disposed of stock in an S corporation (whether or not gain is recognized), or 
• Received a loan repayment from an S corporation

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