I have an Estate trust K-1, it has EIN ABC123, it has the following values:
I said that I did not materially participate in this activity.
Line 2: 500
Line 7: 10000
Line 14:
E: 500
I: statement
Statement A - QBI Pass Through Entity Reporting
It lists the XYZ company, which has a different EIN than the trust
Ordinary business income: 0
Rental Income: 10000
Other: 0
UBIA: 6000
Section 199A Dividends: 0
I then go through the interview for K-1 for an estate trust, filling out the boxes. I then get to box 14.
Questions:
1) What value do I enter for line 14 (I)? Is it 10000?
If I enter 10000, I get to a screen that says:
We see you have Section 199A income.
Does the Section 1999A income (from Box 14) include business income from a business held by the trust or estate?
I answer yes, some or all of this income is from a business
I do NOT check the box for the business is a publically traded partnership (PTP)
It now gets me to a screen for: Name and employer ID number for the business
2) For business name & associated EIN do I enter the name of the Trust or XYZ company?
If I enter the XYZ company I get to a screen that says we need some information about your 199A income
For rental income I enter: 10000
For UBIA I enter: 6000
I then get to a screen that says, great news you are getting a tax break (20%) of 10000, or 2000
Deduction for XYZ company: 2000
I then see I have a form 8995:
Qualified Business Income Deduction Simplified Computation
In Box 1: XYZ company, EIN for XYZ, 10000
Box 2: 10000
Box 4: 10000
Box 5: 2000
...
Box 15: 2000
And this 2000 carries to box 13 on 1040.
Is this correct? Should I use the XYZ company and its EIN in question 2?
Thank you.
