Responses and comments to your questions:
- You, as an individual, own an interest in a private equity (PE) investment; investor.
- PE's are funded and then the $$ are invested in various portfolio companies in line with the focus of that particular PE.
- It just so happens that the PE made an investment in the company where you work as an employee.
- For question #1 - TT is asking if you materially participate in the PE. The answer is most likely "no". I am assuming that since you don't work for the PE you are not involved in the details on what portfolio companies are being purchased, etc.
- For question #2 - the answer is once again "no". The "specified services" question is geared toward the qualified business income deduction. This should have been addressed at the PE level and would be taken into account in the QBI information on the K-1.
- This issue would only apply if your income is over approx $170,000 if filing single or approx $340,000 if married filing joint.
- For question #3 - ignore (do not check the box) the health insurance question is not applicable for your investment in the PE.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
