- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
If the single Form 1065 Schedule K-1 you received reports 12 businesses on the Section 199A Statement or STMT associated with box 20 code Z, you'll need to indicate a choice on the "Is the business that generated the Section 199-A income a separate business owned by the partnership?".
On that "Is the business that generated the Section 199-A income a separate business owned by the partnership?" screen, TurboTax is asking if the Section 199-A income was passed through to the partnership sending you the K-1 by another partnership, S-Corp, or trust; versus being generated by the business operations of the partnership that sent you the K-1. Notice that when you indicate the QBI comes from another business, you'll get additional questions, including whether the pass-through entity is a PTP, and on the next screen the name and EIN of the business that passed through the income to the partnership that sent you the K-1.
You will need to do this with an additional K-1 entered into TurboTax for each of the 12 businesses that reported Section 199A amounts passed through to your partnership.
If you have both types of QBI on your K-1 (generated by the partnership that sent you the K-1 and passed through from another business to the partnership that sent you the K-1) you need to "split" that K-1 into two separate K-1s for entry into TurboTax: one K-1 for the QBI generated by the partnership that sent you the K-1, separate K-1s for the QBI passed through to that partnership by the other business.
Similarly, if your Schedule K-1 shows both passive and nonpassive activities, or it shows more than one type of activity, (i.e. trade or business, rental real estate, or other rentals), or there are multiple rental activities and at least one of the activities is subject to the recharacterization rules (the property type is either 5 (Self-rental) or 7 (Land)), use a separate K-1 worksheet for each activity. In other words, there should not be entries on any two boxes of boxes 1 through 3 and separate K-1's must be completed for rental activities reported on lines 2 or 3 where at least one of the rental activities is self-rented or land and there are also additional rental activities that are NOT self-rented or land.
All that having been said, when you get to the Section 199-A Statement information, you can add it together within those same categories used to "split" the K-1 (generated by the partnership vs passed through to the partnership, and type of activity).
**Mark the post that answers your question by clicking on "Mark as Best Answer"