DavidS127
Expert Alumni

Get your taxes done using TurboTax

The fact that your Section D2 box E4 is blank indicates that TurboTax "thinks" your QBI deduction is limited to zero because of "passive/at-risk limits".  If you "right-click" on that box E4, you will get a pop-up with explanations for the boxes in this section, including this:

 

"If line E3 is a positive amount, or the ordinary income from Section A line 1a column (a) is a positive amount, then line E3 will transfer to line E4. Otherwise, line E4 will be limited to the smallest loss (as determined using absolute value) between line E3, the ordinary income from Section A line 1a column (a), and the allowed income from Section A line 1a column (c)."

 

So, now you should check the Section A, line 1a amounts on that same K-1 to find out what is limiting your QBI deduction.  You can "right click" on the amounts there and select "Data Source" to find the source of the numbers.  In particular, you are looking for reasons that passive losses from 2018 are offsetting 2019 passive income, or for amounts treated as "not at-risk" because of answers given to other questions.

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