I encountered the same flag error on my K-1's... here's what I tried...
(I am in no way a tax professional and am not qualified to advise in any way - only sharing how I proceeded. Please consider only for informational use.)
On the entry page for Box 20 codes and amounts, I had two amounts shown in Column A - for New rental RE inc/loss and for Qualified Property. I added those two amounts together and entered it with the Code Z.
I then proceeded through the interview questions until it said "We need some information about your 199A income." I clicked on the box to the left of "XYZ Co. has business income", which drops down the options to enter the appropriate number for the New rental RE inc/loss. (It is not clearly indicated in TT that this box becomes a drop-down...its easy to miss.) Then I clicked on the box for Qualified Property and entered that corresponding number there.
After proceeding through the rest of the questions, it appeared to clear the prompt for the federal review.
I make no guarantees that this is correct in TurboTax's or the IRS's eyes, but it cleared the flag error for me.
